Revised Due Diligence Agreement: Switzerland maintains
its leadership in the fight against money laundering
Basel, 10 April 2008 – At its latest meeting, the Board of Directors of
the Swiss Bankers Association (SBA) approved the seventh edition of the SBA’s Due Diligence Agreement
(CDB 08). The CDB 08 implements the revised recommendations of the Financial Action Task Force (FATF)
and its nine special recommendations on combating the financing of terrorism. It also takes a systematic
risk-based approach, giving banks greater freedom in their decision-making. The due diligence requirements
in respect of the identification of contracting partners and beneficial owners are also expanded on.
For example, in the case of legal entities and partnerships, the person opening the account must be
identified as well as the company. It is also again stressed that the CDB sanction system applies only
to breaches of the CDB and is treated as separate from the Money Laundering Act and the Money Laundering
Ordinance of the Swiss Federal Banking Commission (SFBC). The CDB 08 will enter into force in July 2008
once it has been recognised by the SFBC as a minimum standard under regulatory law. It ensures that
Swiss banks will maintain their international leadership in the fight against money laundering.
Background
to the CDB The Due Diligence Agreement (CDB) of the Swiss Bankers Association lays
down the obligations on banks with regard to client identification and establishment of the identity
of beneficial owners of assets. It also prohibits active assistance in the flight of capital and tax
evasion. The CDB is revised every five years. The statutory bank auditors are commissioned on behalf
of the banks and the Swiss Federal Banking Commission (SFBC) to verify compliance with this Agreement.
Special investigators and an independent Supervisory Board assess breaches of the Agreement, and offences
are punishable with fines of up to CHF 10 million. Fines imposed by the Supervisory Board for breaches
of this Agreement go to the International Committee of the Red Cross after costs have been covered.
Media
information A link to the revised CDB 08 (including a document showing the changes)
can be found on the home page of the www.swissbanking.org
website.
Junior
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