Swiss regulator FINMA wants to bring stricter AML rules for crypto transactions


The Swiss Financial Market Supervisory Authority (FINMA) has suggested a plan to bring stricter anti-money laundering (AML) rules for crypto transactions.

Per a proposal announced Friday, crypto transactions of over 1,000 Swiss francs (~$1,025) will require client identification as opposed to the current limit of 5,000 francs (~$5,120). FINMA said the new limit has been considered due to “heightened” money-laundering risks in the crypto space.

The proposal will also bring the new threshold in line with the “international standards” approved in mid-2019, said FINMA, indicating the Financial Action Task Force’s (FATF) directive from last June.

FATF, an international money-laundering watchdog, approved a maximum transaction limit of $1,000 for unidentified crypto transactions. It means crypto firms, including exchanges, are required to collect client information of those initiating transactions of over $1,000, as well as details about recipients of those funds.

FINMA will hold a public consultation on the new limit proposal until April 9, 2020, per the announcement.

Last month, the European Union also implemented its Fifth Anti Money Laundering Directive (AMLD5), which requires crypto firms and exchanges to follow enhanced know-your-customer (KYC) programs and reporting obligations.

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Sep 22, 2021, 2:30AM UTC