The Swiss financial regulator has published its updated anti-money laundering (AML) ordinance, noting it’s extending the coverage to include blockchain trading platforms. The updated AML ordinance clarified some reporting and identification requirements applicable to crypto transactions.
Financial Authorities Reveal Swiss Anti-Money laundering Rules Regarding Crypto Transfers
After consultations which began earlier in the year, the Swiss Financial Market Supervisory Authority has partially revised the Anti-Money Laundering Ordinance. This clarifies the application of a maximum limit on unidentified cryptocurrency exchange transactions.
In a press release on Thursday, the regulator said that the regulations, which will come into force on Jan. 1, 2023, now reflect the latest amendments to Switzerland’s Anti-Money Laundering Act and the Federal Council’s Anti-Money Laundering Ordinance.
FINMA reported that its collected feedback supported the position of FINMA that both the mandatory identification verification for beneficial owners of money and the periodic checks proving that client information is current are not required to be given in depth at ordinance level.
The financial watchdog also stressed that an obligation for intermediaries to manage the updating and checking of customer records via internal directives will be maintained.
The authority pointed out, in addition to the fact that the ordinance was being expanded to encompass distributed ledger trade facilities, and also revealed that they received numerous comments about the reporting thresholds for transactions involving virtual currencies. FINMA made the following statement in its announcement:
FINMA is firmly committed to the principle that technical measures must be taken in order to ensure that the CHF 1000 threshold for linked transactions does not exceed it within the next 30 days. This applies even if the abuse has occurred.
However, the supervisory agency noted that this obligation only applies to crypto asset exchanges for cash or anonymous methods of payment.
According to the so-called ‘travel rule,’ which was enforced by Switzerland on Jan. 1, 2020, crypto asset service providers must share identifiable customer data when transferring cryptocurrency, the fiat value of which exceeds the said threshold and prove ownership of non-custodial wallets.
In February 2011, FINMA reduced the threshold for reporting due to increased money laundering risks by amending its AMLO. It was now 1,000 Swiss francs, or approximately $980, as a result. This is a reduction of the previous 5,000 francs.
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