KYC.IO

Global Regulations and Requirements for KYC Onboarding
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KYC to onboard domestic persons

identity documentsnationality

KYC to onboard international persons

photographpassportidentity carddriving licensenamedate of birthaddressnationalityidentity documents

corporate requirements

registered office in SwitzerlandCommercial Registe

National ID card name

Swiss Identity Card

National ID Photo

back of national id photo back

Does the country have Esignature Laws?

REGULATION (EU) No 910/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

E-sig law files

What year did the relevant AML laws and regulations become effective?

2011

Further details on AML regime

1977 (amended at various stages between 1982 and 2011).

Who is the regulator for AML controls for Banking

Swiss Financial Market Supervisory Authority (FINMA)

Link to site

http://www.finma.ch/e/pages/default.aspx

Other financial Services

FINMA or or various self-regulatory organisations (SROs),see a member list on

Website of Regulator

http://www.finma.ch/e/pages/default.aspx, n http://www.finma.ch/e/beaufsichtigte/sro/Pages/default.aspx

Practical Guidance for AML

For Banks, the Swiss Banking Association provides an Agreement on the Swiss banks’ code of conduct with regard to the exercise of due diligence (CDB 08) including a commentary

Practical guidance PDF's

shop.htm

Is there a requirement to verify the identity of customers retroactively?

Retroactive details

No - customer identification is not required, however the financial intermediary must identify beneficial owners retrospectively

Has the country been the subject of FATF mutal evaluation in the last 3 years?

Yes

Are there minimum transaction thresholds (Y/N)

Yes

More details on minimum transaction thresholds.

Yes - due diligence obligations can be waived if the business relationship only involves assets of low value and there is no suspicion of money laundering or terrorist financing. The relevant thresholds are: a) for electronic payments for services and goods: CHF5,000 per calendar year and per client; b) for bilateral credit cards (including department store cards): CHF5,000 per month and per client; and c) in the case of financial leasing, CHF25,000 per calendar year and per client.

What are the requirements for customer identification information for individuals

For face-to-face contact, the bank verifies identity via an official identification document with a photograph (passport, identity card, driving licence, etc.) and puts on record the individual’s full name, date of birth, address and nationality. For non face-to-face contact, the bank obtains a certified copy of an official identification document, as well as a confirmation of the domicile indicated, either through an exchange of correspondence or by any other appropriate method.

Details to be Collected on Corporates

With a registered office in Switzerland the bank ascertains whether the firm’s name is published in the official Swiss Commerce Gazette or listed on a public website for commercial register entries. Private directories/databases can also be used. Otherwise, identity must be established with an extract from the Commercial Register. Identity is verified with an extract from the Commercial Register or extracts from public websites for Commercial Register entries, or equivalent documents substantiating the existence of the legal entity or company (such as a certificate of incorporation). In addition, the identity of the individuals establishing the business relationship must also be checked and the bank must take note of and document the contracting partners' power of attorney arrangements. Further, the financial intermediary must acknowledge the provisions regulating the power to bind the legal entity, and verify the identity of the persons who enter into the business relationship on behalf of the legal entity.

What are the high level requirements around beneficial ownership (identification and verification)?

All due diligence which can be reasonably expected under the circumstances must be exercised in establishing the identity of the beneficial owner. If there is any doubt as to whether the contracting partner is himself the beneficial owner, the bank shall require by means of Form A, a written declaration setting forth the identity of the beneficial owner.

What circumstances are enhanced customer due diligence measures required?

Local regulations and guidance discuss higher risk business relationships and state various criteria that may be relevant to identifying higher risk businesses e.g. the domicile of the contracting party and beneficial owner, type of business, origin country of payment, volume of incoming funds, the complexity of the structures, notably in case of use of domicile companies and the absence of personal contact with the beneficial owner. Politically Exposed Persons and correspondent banking are specifically covered.

How should FI's deal with Politically exposed persons

Business relationships with PEPs are regarded as higher risk and local regulations/guidance requires that enquiries should be made to ascertain whether the contracting partner/beneficial owner is a PEP. The means of investigation for such higher risk business includes: obtaining information in written or oral form from the contracting partner or beneficial owner, visits to the places of business of the contracting partner and beneficial owner, consultation of publicly accessible sources and databases, and information from trustworthy individuals where necessary.

What enhanced due diligence must be performed for correspondent banking relationships?

For cross-border banking relationships with foreign banks, the following due diligence procedures are to be performed in addition to the standard clarifications for high risk relationships: ensuring that the foreign bank is prohibited from entering into business relationships with shell banks, clarifying the AML and CFT controls implemented by the foreign bank and examining whether the foreign bank is subject to an equivalent regulation and supervision in the anti-money laundering and counter financing of terrorism domain. Furthermore a risk-based procedure has to be established concerning the processing of repeated wire transfer instructions which lack the required sender information.

Are relationships with banks who might be considered a 'shell' and without substance permitted?

Yes

In what circumstances is additional due diligence required for non face-to-face transactions and/or relationships?

In the case of business relations entered into through correspondence or via the internet, banks must verify the identity of the contracting partner by obtaining a certified copy of an official identification document as well as a confirmation of the domicile indicated, either through an exchange of correspondence or by any other appropriate method. Identification based on an official identification document at delivery or receipt of mail is also deemed as sufficient proof of identity, provided that personal delivery to the recipient is thus warranted. In addition, beneficial ownership according to Form A must invariably be provided by individuals entering into a business relationship with a bank through correspondence. For business relationships established by electronic means, the bank shall identify, mitigate and control the risk associated with the use of new technologies. The lack of personal contact with the contracting party and the beneficial owner is considered an element of increased risk, according to the domain of activity of the bank.

To whom are SAR's made? (suspicious activity reports)

Money Laundering Report Office (MROS)

Link to website of SAR reporting

http://www.fedpol.admin.ch/content/fedpol/en/home/themen/kriminalitaet/geldwaescherei.html

Other Suspicious or unusual transactions obligations.

Are there any de-minimis thresholds below which transactions do not need to be reported?

Are there any penalties for non compliance with reporting requirements e.g. tipping off?

Anyone who fails to comply with the duty to report shall be liable to a fine of up to CHF500,000, or in the case of negligence, up to CHF150,000.

Are there any requirements (legal or regulatory) to use automated Suspicious Transaction monitoring technology?

Yes. The AML Ordinance requires banks, fund manager, investment companies and its asset managers and security dealers to operate an ITbased system for transaction monitoring.

Is there a requirement to obtain authority to proceed with a current/ongoing transaction that is identified as suspicious?

The financial intermediary must immediately freeze the assets connected with the report filed. It must continue to freeze the assets until it receives an order from the competent prosecution authority but, at the most, for five working days from the time the report is filed.

Does the local legislation allow transactions to be monitored outside the jurisdiction?

Transaction monitoring may be outsourced to persons outside Switzerland, provided that the respective information is still available in Switzerland and provided that the results are subject to a plausibility check in Switzerland. However, the Swiss financial intermediary remains responsible. Furthermore, the client needs to be informed in case of a transfer of client information outside Switzerland.

Is there a legal requirement for a bank’s external auditor/other external organisation to report on the bank’s AML systems and controls?

N/A

If an external report on the bank’s AML systems and controls is required: a) how frequently must the report be provided?

N/A

To whom should the report on AML systems be submitted?

N/A

Is an AML system part of the financial statement audit?

N/A

What are the requirements for the content of this external report on a bank’s AML systems and controls? Does it require: a) sample testing of KYC files? b) sample testing of SAR reports? c) examination of risk assessments?

N/A

Data Protection Laws And Personal Data

N/A

Data Protection for Corporate Data

N/A

Regulator Acronym

FINMA

Year of last FATF mutual evaluation

N/A

Field 67

certified copy of official identification documentconfirmation of domicile

National ID card details

The Swiss identity card is issued to any citizen.

National ID source

http://www.identity-cards.net/record/switzerland

Passport Photo

practical Guidance yes / no

Is there a risk based approach

Legal Requirement

Regulator allows for monitoring transactions outside jurisdiction

Requirement to proceed

Yes

requirement to use automated suspicious transaction tools

Yes

Who are SARS made to?

MROS

shell banks

Yes

EDD for correspondent banking

Yes

Minimum transactions

CHF 25,000

Min transaction USD

25177

key restrictions

There are no noteworthy exceptions to the law, but some caution may be warranted in the areas of real estate, notarized documents and wills and trusts

Summary

Yes, Article 14 states that electronic signatures may replace handwritten signatures. Summary of law Switzerland follows the UNCITRAL model law and is similar to the laws of many European Union member states. It is considered a two-tier jurisdiction because it gives digital signatures the same status as handwritten signatures but also recognizes simple electronic signatures as legal and enforceable. Countries that follow this model give companies the opportunity to select different forms of signatures and customize their business processes based on the form that is most convenient and appropriate for each use case.

Are e-signatures acceptable

If the AML laws and/or regulations became effective in the last 2 years, what were the requirements of the previous AML regime?

N/A

Non financial sector (e.g. casinos, high value goods etc.)

See (b)

Does the country have a risk based approach?

Yes

Where copies of identification documentation are provided, what are the requirements around independent verification or authentication?

Independent authentication of copies of official identification documents may be provided by branches, representative offices and subsidiaries of the bank, correspondent banks, other financial intermediaries recognised by the account opening bank as well as notaries and public authorities who customarily issue such confirmations of authenticity. Additionally, authenticated copies are issued by Post Offices and SBB (Swiss Railway) stations.