Swiss Banks, Brokers and Fintechs Must Prove Online Clients Are Real People
By Damian Chmiel
AI summary of the source article
The Swiss Financial Market Supervisory Authority (FINMA) has issued a revised circular on video and online identification, taking effect November 1. Under the new rules, Swiss banks and brokers must conduct liveness detection when onboarding clients using the state e-ID or qualified electronic signatures, extending a safeguard previously restricted to photographed ID uploads. The changes address concerns over AI deepfakes and remote fraud. FINMA also ruled that required initial identification transfers must originate from banks in Switzerland, Liechtenstein, or qualifying FATF member states, specifically excluding non-bank providers such as PayPal, Twint, and crypto service firms.
Why it matters
The mandate tightens remote onboarding and anti-fraud compliance for Swiss financial institutions, countering AI-generated deepfakes while limiting the role of non-bank payment providers in identity verification.
Key facts
- FINMA's revised circular requiring liveness detection for e-ID and qualified e-signatures takes effect on November 1.
- Firms onboarding clients via qualified electronic signatures have until November 1, 2027 to implement address checks and liveness detection.
- FINMA rejected proposals to allow initial verification transfers from PayPal, Twint, card issuers, or crypto service providers, maintaining that only banks qualify.