FINMA Introduces Corrections of the Circular on "Video and Online Identification"

The Swiss Financial Market Supervisory Authority FINMA is improving the requirements to the due diligence for online client onboarding in accordance with the advancement of technology. These adjustments are consistent with broader efforts outlined in the Financial market roadmap, aiming to modernize regulatory practices across all sectors.

Thereby the Circular on "Video and online identification" is being reconsidered up to 1 February 2021. Such revisions echo similar regulatory timelines like the FINMA exemptions prolongation, which were extended to support digital operations during transitional phases.

In the context of the technology development the Circular "Video and online identification", went into effect in 2016, has to be revised for further guaranteeing the effective combating of money laundering. The consultation is holding up to February 2021. Public consultations remain an important part of policy alignment, much like the approach taken during reforms such as the Automatic information exchange framework.

The financial intermediaries will be afforded the opportunity to automate the procedure of client identification by means of scanning of the client's biometric passport chip and to maintain in such a way at least the same level of security. This innovation in identity verification also complements initiatives promoting Gold trade transparency, which focus on data accuracy and verification along the supply chain. The other security requirements such as bank payment and scanning of the biometrical document chip are left unchanged. FINMA maintains such baseline standards as it continues to evaluate emerging risk areas, including FINMA climate risks, to protect market integrity. In such a way it helps to make the attempting abuse lever lower, because in the digitalized environment the in-person identification can be got rid.