Video and online identification and new licence category for FinTechs

FinTech, FINMA, KYC

FinTech: FINMA released rules for customer on-boarding via video- and online identification and announced support for new licensing category.

The new Swiss Anti-Money Laundering Ordinance has been enacted in January 2016 which allowed FINMA to also consider new technologies for AML/KYC and due diligence processes. In its recent circular 2016/7 FINMA defined requirements for the use of video- and online identification for client on-boarding. The circular can be found here (PDF, 221 Kb). FINMA also released a statement supporting a new licensing category as well as a potential license exception (sandbox) for financial innovators. According to FINMA this license category/exception should consider the limited scope and lower financial risks of many Fintech innovators and therefore regulatory requirements should be less extensive compared to a banking license. The statement can be found here (PDF, 221 Kb).

MME is one of the leading legal and advisory firms for Fintech companies in Switzerland. A cooperation with KYC Spider AG allows MME to support Fintech companies with necessary regulatory support as well as efficient tools to ensure compliance with AML & KYC regulations around the globe.

 

* Peter Henschel

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