By signing the agreement, the banks mandate and authorize their auditors to verify compliance with the agreement. Compliance should be assessed on the basis of annual compliance audits and a risk-based approach. In particular, account should be taken of the nature of the activity and of the number and volume of commercial relationships that have been established since the last Review. Finally, there is good news that the Federal Association of Banks has also made a written comment on the CBD. The commentary illustrates the code and will help practitioners better understand which clauses in the code are open to interpretation (see www.swissbanking.org/). Lightening the requirements for identifying the contractor According to the code regime, the contractor must be identified for assets deposited with Swiss banks. In accordance with the 2008 Agreement, it is not necessary to re-identify that partner when establishing additional commercial relations with Contracting Parties whose identity has already been duly verified. For more than 30 years, the Swiss Banking Community has itself been regulated by the Agreement on the Code of Conduct for Swiss Banks on the Exercise of Duty of Care. The agreement was concluded between the Swiss Bankers Association and the signatory banks that are members of the association. It lays down anti-money laundering principles and the prohibition of active assistance in the event of capital flight and tax evasion and other similar activities. Like banks and securities dealers, fund managers, collective investment asset managers and KAG investment companies are subject to the rules of CBD 16 as regards the verification of the identity of the contractor and the identification of the beneficial owner.
The basic principles of issuing codes of conduct are as follows: after a maximum period of 90 days without the required documents, the account must be suspended for all deposits and withdrawals until the bank has the complete documents. Unlike the 2003 contract, the bank is not obliged to terminate the business relationship if all the necessary documents have not been provided within 90 days. In the absence of legal bases and to allow banks to move smoothly, a transitional period of one year applies: the financial sector of the Swiss economy has a long tradition of self-regulation. . . .