Swiss AML-KYC Requirements

Swiss AML-KYC Requirements – A Step-By-Step Guide

Swiss AML-KYC Requirements and procedures are a set of steps that must be carried out to prevent money laundering, terrorist activities and to ensure that financial institutions and trustees know their customers. The procedure typically includes the following six (6) steps:

1. Customer identification:

Verify the identity of their customers using reliable and independent sources. This includes verifying the customer’s name, address, date of birth, and other relevant information:

Acceptable Forms of Proof of Identity:

In Switzerland, there are several acceptable forms of proof of address for AML-KYC purposes. If not listed below, they are not acceptable in Switzerland. Some of the most commonly accepted forms of proof of address include:

  • Utility bill: A recent utility bill, such as a water, electricity, or gas bill, that is addressed to the customer at their residential address.
  • Bank statement: A recent bank statement that shows the customer’s residential address.
  • Government-issued ID: A government-issued ID, such as a passport or national ID card, that shows the customer’s residential address.
  • Tax bill: A recent tax bill, such as a property tax bill, that is addressed to the customer at their residential address.
  • Official correspondence: An official letter or correspondence from a government agency, such as the tax authority or social security office, that is addressed to the customer at their residential address.
  • Rent or lease agreement: A copy of a rent or lease agreement that shows the customer’s residential address.
  • Electronic verification methods may also be used, such as online databases or geolocation services, to quickly and accurately verify the customer’s address, however, the bank must still have a physical copy of the customer’s proof of address on file.

Acceptable Forms of Proof of Address:

In Switzerland, there are several acceptable forms of proof of address for AML-KYC purposes. Some of the most commonly accepted forms of proof of address include. Other forms not listed below are not acceptable (such as mobile phone bills):

  • Utility bill: A recent utility bill, such as a water, electricity, or gas bill, that is addressed to the customer at their residential address.
  • Bank statement: A recent bank statement that shows the customer’s residential address.
  • Government-issued ID: A government-issued ID, such as a passport or national ID card, that shows the customer’s residential address.
  • Tax bill: A recent tax bill, such as a property tax bill, that is addressed to the customer at their residential address.
  • Official correspondence: An official letter or correspondence from a government agency, such as the tax authority or social security office, that is addressed to the customer at their residential address.
  • Rent or lease agreement: A copy of a rent or lease agreement that shows the customer’s residential address.

2. Risk assessment:

Assess the risk associated with a customer or a transaction to determine if there is a higher risk of money laundering or terrorist financing. This includes evaluating the customer’s profile, business activities, and source of funds.

3. Customer due diligence:

Gather additional information about the customer, including their business activities, source of wealth, and other relevant information. This helps to better understand the customer’s financial profile and to identify any potential risks.

4. Monitoring transactions:

Monitor the customer’s transactions to ensure they are consistent with the customer’s profile and to identify any suspicious activities.

5. Record-keeping:

Maintain accurate and up-to-date records of all customer information, including the results of the customer identification and risk assessment processes.

6. Reporting suspicious activities:

Report any suspicious activities to the relevant authorities to prevent money laundering and terrorist financing.

It is important to note that the acceptable forms of proof of address may vary depending on the financial institution and the jurisdiction. Banks, trustees and other financial institutions must comply with the AML-KYC regulations set by the Swiss Financial Market Supervisory Authority (FINMA) and must ensure that they have adequate systems and processes in place to prevent money laundering and to know their customers.

The above steps are crucial for compliance with anti-money laundering regulations and to maintain the integrity of the financial system. The procedures help to prevent criminal activities and protect financial institutions and its customers from financial losses.