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Swiss Financial Regulatory Authority Amended Ordinance Clarifies Crypto Standards

  • The Swiss financial regulatory authority has published an amended anti-money laundering (AML) ordinance.

  • The ordinance also clarified various crypto transaction reporting and identification requirements.


Swiss Financial Regu

The Swiss Financial Market Supervisory Authority (FINMA) 

Has partially changed its Anti-Money Laundering Ordinance (AMLO) following consultations that began earlier this year. 

The ordinance clarifying the application of a maximum limit for unidentified crypto exchange transactions.

The regulator stated in a press release on Thursday (Nov 3) that the regulations now reflect the most recent revisions to Switzerland's AML Act and the Federal Council's AML Ordinance. The regulations will go into effect on January 1, 2023.

FINMA stated that the collected comments confirmed its stance that necessary identification verification of beneficial owners of funds, as well as frequent checks to ensure that client data is up to date, do not need to be detailed at the ordinance level.

At the same time, the financial watchdog stressed that a provision requiring intermediaries to regulate the procedures for updating and reviewing customer records via an internal directive will be retained.

The authority also stated that the ordinance is being expanded to include distributed ledger trading facilities. Also. the ordinance has received numerous opinions regarding the reporting threshold for digital currency transactions.

FINMA added in the announcement, “given the risks and recent cases of abuse, the rule that technical measures are required to prevent the threshold of CHF 1000 from being exceeded for connected transactions within 30 days.”

However, the regulatory agency noted that this obligation only applies to crypto asset exchange transactions for cash or other anonymous means of payment.

The so-called 'travel standard,' which Switzerland enacted on January 1, 2020, requires crypto asset service providers to provide identifiable customer data when moving cryptocurrency with a fiat value.

In February of that year, FINMA amended its AMLO to lower the threshold for reporting requirements to 1,000 Swiss francs (approximately $980 at the time of writing), citing heightened risks of money laundering.

Do you think Swiss authorities will strengthen the reporting requirements for cryptocurrency transactions in the future? Please share your thoughts in the comments box below.

Read also: Coinbase Reports a $545M Net Loss In The Third Quarter Of 2022

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