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FINMA updates due diligence requirements for digital onboarding

Monday 19 February 2018 10:40 CET | News

The Swiss Financial Market Supervisory Authority FINMA has announced several updates on the due diligence requirements for digital onboarding to reflect advances in technology.

Almost two years have passed since FINMA Circular 2016/7 “Video and online identification” came into force and initial experience with digital identification has been positive. While technology has since advanced and financial intermediaries have adapted their processes, new risks of misuse have also emerged. The amended circular takes account of these developments and ensures that technology neutrality and effective money-laundering prevention are maintained

The video identification process no longer contains the provision regarding the single-use password (TAN). Instead, at least three randomly selected visual security features of identification documents must be checked. For online identification, FINMA no longer requires a transfer from a bank in Switzerland to ensure compliance with due diligence requirements: under certain conditions, a transfer from a bank in an FATF member state is now also permitted.

Additionally, liveness detection is required as a further security measure when checking photographs.

FINMA is launching a consultation on the changes, which runs until 28 March 2018.


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Keywords: FINMA, Switzerland, digital identity, digital onboarding, identity verification, security, compliance
Categories: Fraud & Financial Crime
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Countries: World
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Fraud & Financial Crime






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