In January 2001 the Professional Due Diligence in Financial Transactions Act and the Professional Due Diligence in Financial Transactions Ordinance (“SPG” and “SPV”) came into force. Since then the law has been amended several times and adjusted the national and international developments.
The Due Diligence Act is used to combat money laundering and organised crime.
All financial intermediaries – in particular fiduciaries, banks and portfolio managers – are subject to the following obligations when entering into a business relationship:
- to identify the contracting party,
- to identify the beneficiaries,
- to determine the assets,
- to draw up a profile of the business relationship and the economic background and origin of the assets as well as their intended purpose.
Copies of the identification documents of the contracting party and of the beneficial owner (passport, ID card, driving licence, proof of residence, utility bill) have to be copied and must be stored separately together with the collected due diligence documentation (contracts, payment orders, aso.).