Agreement on professional ethics on the banks' duty of care

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The agreement on the professional code of conduct on the duty of care of banks (CDB 16) is a code of conduct for the credit institutions in Switzerland and deals with issues relating to the careful handling of entrusted funds.

aims

The aim of the agreement on the professional code of conduct for banks' duty of care (VSB) is to preserve the reputation of Swiss banks in Switzerland and abroad; to specify the applicable due diligence obligations under banking law and to contribute to the fight against money laundering .

scope

All banks and securities dealers with all branches domiciled in Switzerland are subject to the code of ethics, but not their foreign branches, representations and subsidiaries (Art. 1 CDB).

Legal nature

Switzerland has strict regulations to combat money laundering and the financing of terrorism. The agreement on the professional rules on the due diligence of banks was issued as a self-regulation by the Swiss Bankers Association (SBA) (currently CDB16; CDB20 will come into force on January 1, 2020).

The professional rules of the CDB are intended to specify certain regulated due diligence obligations of the Federal Act on Combating Money Laundering and Terrorist Financing (Art. 3–5 AMLA) as well as the concept of “due diligence in the circumstances” when accepting assets in accordance with Art. 305 ter StGB ( Art. 2 CDB).

Structure of the CDB

Since 1977, the VSB has laid down the obligations of the banks to identify the contractual partner and to establish the controlling person or beneficial owner. It also prohibits active aiding and abetting of capital flight or tax evasion.

  1. Introduction (Art. 1–3 CDB)
  2. Identification of the contractual partner (Art. 4–19 CDB)
  3. Determination of the beneficial owner of operationally active legal persons and partnerships (Art. 20–26 CDB)
  4. Determination of the beneficial owner of the assets (Art. 27–42 CDB)
  5. Delegation and supervision regulations (Art. 43–46 CDB)
  6. Prohibition of active aid to capital flight (Art. 47–52 CDB)
  7. Prohibition of active aiding and abetting tax evasion and similar acts (Art. 53-57 CDB)
  8. Test and procedural provisions (Articles 58–68 CDB)
  9. Final provisions (Art. 69-70 CDB)

Violations of professional ethics (Art. 58-67 CDB)

Art. 58–67 CDB are applicable by signing the professional code of conduct (Art. 58 CDB).

The statutory auditors are instructed to review the banks' compliance with the agreement. Special investigators and a CDB supervisory commission assess violations. In the event of a violation of professional ethics, the bank at fault can be charged a contractual penalty of up to CHF 10 million, which the SBA will then use for charitable purposes.

Central innovations of the VSB20

  • Cash transactions: The threshold for identifying the contract partner will be lowered from CHF 25,000 to CHF 15,000;
  • Opening an account without complete documentation: The regulation according to which an account can be opened without all information or documents relating to the contractual partner, controlling person and beneficial owner has been tightened. After 30 days, the account must be blocked for all entries and exits and the business relationship must be terminated in any case if the missing information or documents cannot be provided;
  • Video and online identification: The FINMA circular on video and online identification has been formally incorporated into the CDB;
  • Abbreviated procedure before the supervisory commission: The provisions on the abbreviated procedure have been updated.

Web links

Individual evidence

  1. ↑ Combating money laundering. Retrieved July 19, 2019 .
  2. ↑ CDB 20: Revised professional code of conduct in the area of ​​combating money laundering. Retrieved July 19, 2019 .