From Reputation to Regulation — And What Comes Next
Once, it was enough for a client to appear in the Bilanz 300 to satisfy Know Your Customer (KYC) requirements. Reputation, not documentation, was the standard in Swiss wealth management. Questions were few about whether a name carried prestige, and onboarding was swift.
Those days are over. Today, Swiss KYC regulations require complete transparency. That means verifying identity and explaining the source of wealth and funds. Complete and auditable documents must back all of this. As a result, compliance has become a key part of wealth management.
Historic Shifts in KYC Culture
The real change began in the early 2000s and accelerated post-2008. Under pressure from the FATF, OECD, and EU AML directives, Switzerland had to align with global transparency standards. Bank secrecy softened. The “white money” strategy took shape. Compliance was no longer a box-ticking formality—it became a responsibility shared by banks and independent wealth managers.
Today, onboarding includes detailed background checks, source of wealth analysis, enhanced due diligence (EDD), and ongoing monitoring. Compliance teams expect tax declarations, transaction trails, and contracts, not just a story. Especially for independent wealth managers (EAMs), meeting FINMA’s expectations is no longer optional — it’s mandatory.
Technology and the Digital Shift
Firms hope digital onboarding, AI-driven document checks, and shared blockchain KYC platforms will help manage the rising complexity. Swiss reg tech should enable secure, faster onboarding while strictly adhering to Swiss AML standards. Future Blockchain-based KYC systems like Wecan Comply will allow EAMS to share verified compliance data with multiple banks, reducing duplication and improving oversight.
Physical Cash and the CBDC Question
One major challenge remains: physical cash. Cash resists traceability, complicates onboarding, and triggers red flags. As a result, more voices are supporting limits on large cash transactions. Meanwhile, central banks — including the Swiss National Bank — are experimenting with Central Bank Digital Currencies (CBDCs), which could embed KYC and compliance directly into the currency’s infrastructure.
This raises a profound shift: from onboarding to real-time, embedded compliance. From privacy by default to transparency by design.
What Is Next?
Independent wealth managers in Switzerland have already made massive strides, adapting to increasingly complex KYC and AML demands. However, as digital currencies, blockchain KYC, and continuous identity verification become the new frontier, the question is no longer whether compliance is essential, but how far it will go.
What is next?
