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<\/span><\/p>\n In Switzerland, the Federal Act on Combating Money Laundering and Terrorist Financing (AML Act) imposes strict due-diligence and transparency obligations on any person or company that manages assets on behalf of third parties. Client identification, beneficial-owner verification, documentation and suspicious-activity reporting are required not only of fiduciaries and financial service providers, but also of entrepreneurs active in fintech, crypto or asset management. My Swiss Company SA, a Swiss fiduciary based in Geneva, Lucerne and Zug<\/a>, explains the legal framework, the thresholds for applicability, the role of self-regulatory organisations (SROs), and best practices to remain AML-compliant and protect your company\u2019s reputation in Switzerland.<\/span><\/p>\n The\u00a0<\/span>Federal Act on Combating Money Laundering and Terrorist Financing (AML Act, RS 955.0)<\/strong>\u00a0<\/span>was adopted in 1997 and implements the recommendations of the Financial Action Task Force (FATF).\u00a0<\/span> The Act applies to any\u00a0<\/span>financial intermediary<\/strong>, defined in Art. 2 AML Act as a person or corporate entity which, \u201cin the course of their business activity and on behalf of others, accepts, holds or arranges transferable assets or carries out transfers of assets.\u201d\u00a0<\/span> According to Art. 2 para. 3 AML Act and related practice, an activity is considered \u201ccarried out in the course of a business activity\u201d when certain quantitative or qualitative thresholds are met.\u00a0\u00a0Recognised practice also uses criteria such as:<\/span><\/p>\n Once any one of these thresholds is crossed, the entity must be treated as a\u00a0<\/span>financial intermediary<\/strong>\u00a0<\/span>under the AML Act.<\/p>\n The intermediary must verify the identity of its contracting party by reference to official identity documents such as a passport, commercial-register extract, or constitutive act of the entity. Where the contracting party is not the ultimate economic beneficiary, the intermediary must obtain a\u00a0<\/span>written declaration <\/strong>identifying the beneficial owner, and in the case of legal persons, verify the person who ultimately controls the entity (often defined as holding 25% or more of capital or voting rights).<\/p>\n Where the business relationship, transaction or structure poses\u00a0<\/span>increased risk<\/strong>\u00a0<\/span>(politically-exposed person, offshore, unusual volume), extra clarifications must be performed and documented: origin and destination of funds, economic purpose, client profile.1. What is the AML Act and to whom does it apply?<\/strong><\/h2>\n
1.1 A law to protect the integrity of the Swiss financial system<\/strong><\/h3>\n
Its objective is to prevent assets derived from criminal activity from entering the Swiss economy.<\/span><\/p>\n1.2 Broad application<\/strong><\/h3>\n
This includes:<\/span><\/p>\n\n
2. When does a company become subject to the AML Act?<\/strong><\/h2>\n
2.1 The notion of professional activity<\/strong><\/h3>\n
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2.2 Typical examples<\/strong><\/h3>\n
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3. The main obligations imposed by the AML Act<\/strong><\/h2>\n
3.1 Client-identification (Know Your Customer \u2013 KYC) \u2013 Art. 3 AML Act<\/strong><\/h3>\n
When establishing a business relationship at a distance, stricter authentication is required (certified copy, qualified electronic signature or video-identification).\u00a0<\/span><\/p>\n3.2 Identification of the beneficial owner \u2013 Art. 4 AML Act<\/strong><\/h3>\n
3.3 Clarifications and documentation \u2013 Arts. 6 and 7 AML Act<\/strong><\/h3>\n
All documents must be\u00a0<\/span>retained for at least ten years<\/strong>\u00a0<\/span>after the end of the business relationship.\u00a0<\/span><\/p>\n3.4 Reporting obligation \u2013 Art. 9 AML Act<\/strong><\/h3>\n