Swiss financial authorities are revising anti-money laundering rules and will update customer due diligence and transaction monitoring standards for the banking and insurance industries from next year. The core aims are to boost transparency in corporate ownership structures and clarify oversight standards for transactions with foreign banks and some advisory work.

Fintech News Switzerland reported on Nov. 11 that the Swiss Financial Market Supervisory Authority (FINMA) published the final draft of a partial revision to the Anti-Money Laundering Ordinance-FINMA (AMLO-FINMA). The move reflects the revised Anti-Money Laundering Act and a Federal Council ordinance ahead of the Financial Action Task Force (FATF) next mutual evaluation by country. The revised rules take effect on Jan. 1 the following year.

FINMA also recognised, as minimum supervisory standards, a code of conduct on customer due diligence obligations for Swiss banks and revised rules of the insurance industry's self-regulatory organisation. The two self-regulatory regimes are each given a 4-month grace period.

It also adjusted rules on correspondent banking with foreign banks. After gathering opinions, it limited the scope of Article 37(5) to customers who can directly access a correspondent bank account. This clarifies the range of information financial institutions must verify about counterparties.

It also supplemented standards for identifying a company's beneficial ownership and control structure. FINMA explained the relationship between rules on complex shareholding structures and domicile companies, and specified review methods by risk level and documentation requirements. It also added explanatory material on methods for monitoring transactions and customer relationships to prevent sanctions violations.

In Switzerland, an amended law that expanded the scope of the Anti-Money Laundering Act to cover some advisory services related to real estate transactions and the establishment and structuring of corporations took effect on the first day of last month. Through separate guidance, FINMA distinguished between the scope of existing guidance on financial intermediation activities and the supervisory authority for advisory work.

FINMA supervises advisory work by entities subject to direct oversight such as banks, but independent advisory work that does not also involve financial intermediation is not subject to FINMA's direct supervision. Separately from this revision, FINMA also plans to revise its existing financial intermediation circular, "2011/1", in the future.