CDB 20: revised code of conduct in the area of the fight against money laundering
The Agreement on the Swiss banks’ code of conduct with regard to the exercise of due diligence CDB, which is issued by the Swiss Bankers Association (SBA), sets out the duties of the banks relating to the identification of contracting partners as well as the establishment of controlling persons or beneficial owners.
The CDB 20 was issued by the Swiss Bankers Association (SBA) as a self-regulatory agreement and was approved by FINMA. Among other matters, the revised agreement addresses the need for improvement identified by the Financial Action Task Force on Money Laundering (FATF) in the fight against money laundering.
Key amendments to the CDB 20:
- Cash transactions: the threshold amount for the identification of the contracting partner has been lowered from CHF 25,000 to CHF 15,000;
- Account openings without complete documentation: the rules according to which an account can be opened without all information or documents regarding the contracting partner, the controlling person and beneficial owner being made available have been tightened. After 30 days, the account must be blocked for all deposits and withdrawals and the business relationship is to be annulled in all cases if the missing information or documents cannot be provided;
- Video and online identification: the FINMA circular regarding video and online identification has been formally incorporated into the CDB;
- Abbreviated process by the supervisory board: the rules for the abbreviated process have been updated.
The CDB 20 will come into force on 1 January 2020 together with FINMA’s Anti-Money Laundering Ordinance-FINMA (AMLO-FINMA), which was also published today.