Ethics of the profession
asset managers on the obligation to submit to supervision (Ethics of the
Implementation of the amended Money Laundering Act
PolyReg addressed the following letter to all members:
Zurich, 16 March 2009
Information to all members
The amended Anti Money Laundering Act has entered into force on the
1st of February 2009. As has been announced on the occasion of
the training courses last year, this amendment introduces new duties of
diligence, namely the duty to take note of the power given to the
representatives of legal entities and the duty to identify these persons in
addition to the contracting party (article 3 al. 1 MLA). Furthermore a new
duty of diligence has been established, requiring the identification of type
and scope of the contractual relationship as intended by the contracting
party (article 6 MLA). The duty to report a suspicious act to MROS has been extended, such
report being already required when the financial intermediary decides to
terminate negociations due to a founded suspicion before concluding a
contract (article 9 MLA).
As the new law does not provide for any delay to implement the amended
regulations, they become immediately applicable. Until the new FINMA approved
PolyReg regulation will become available all members have to implement the
new duties of diligence directly based on the law according to their best
knowledge and effort. Organisational measures have to be taken until 30 June
2009 at the latest in order to safeguard compliance.
In the meantime PolyReg will do it's best efforts to answer all questions
you may have. Some additional (provisional) guidelines are available at
We expect to be ready to cover all aspects of the new PolyReg regulation
regarding the revised duties of diligence in the training courses starting
this May. For this reason we suggest, that members book early courses to the
Matthias Schaad, director
Provisional interim instructions on implementation
In order to implement the new duties of diligence and until new
approved PolyReg regulations become available the following instructions
apply to members of PolyReg in addition to the regulation in force:
Date of application
These instructions apply from 19 March 2009 and are immediately
applicable. An adaptation of existing client files to the new requirements
for the identification of legal entities (retrospective application) is not
necessary for the time being.
Identification of legal entities and companies
In addition to identifying legal entities and companies as hitherto,
members have to identify all natural persons who establish business
relationships in the name and on behalf of the contracting legal entity.
The legal entity's procuration disposition regarding this person has to
be recognized and documented (HR excerpt, power of attorney).
If several natural persons are acting jointly (eg. collective signature),
the above applies to all of these persons.
Determination of type and scope of the contractual relationship
When entering into a new business relationship, nature and purpose of the
business relationship as desired by the contracting party has to be
identified (or clarified) and the result has to be documented in a
memorandum or note in the customer profile.
The amount of information to be collected depends on the risk involved with
the business relationship and shall be adapted to the circumstances, namely
considering if nature and scope of the business relationship appear obvious
under the circumstances or need further clarification.
Assets of minimal value
The new "de minima clause" of Article 7a MLA shall not be applied until
new SRO Regulations giving guidance are available.
Duty to report
Suspicion of financing of terrorism is now also requiring a report
under article 9 AMLA.
In case negotiations in the process of establishing a new business
relationship are terminated due to a reasonable suspicion according to
article 9 para 1 letter a MLA a report to MROS must be filed, even if the
relationship has not yet been established.
Information after report
If a financial intermediary informs another financial intermediary after
having filed a report to MROS according to article 10a MLA, he shall
disclose and document that fact in a memorandum.