General expectations for blockchain companies
Per Swiss Banking Association Guidelines, banks should assume that ICO companies / token issuer are subject to the AMLA:
- if not subject to AMLA, ICO company / token issuer explain the reasons (e.g. legal opinion)
- if there is still doubt from the bank’s side, ICO company / token issuer has to inquire and obtain no-action letter from FINMA
- if AMLA (Anti-Money Laundering Act) applies, evidence of SRO (self-regulatory organisation) affiliation or delegation to other financial intermediary
Token analysis according to FINMA ICO Guidelines includes:
- description of business model and area of involvement
- proof of existence of project (e.g. white paper)
- independent technical audit review of smart contract
- internal compliance guidelines and dedicated compliance contact
- expected breakdown of fiat and crypto
- frequency and amounts of incoming transactions
- if soft-cap not reached, explain pattern of repayment
- have guidelines in place and take measures to exclude countries (on bank’s request, provide list of target countries and demonstrate compliance with local regulations)
Note: If previously issued ICO, on request by bank, KYC / AML documentation and demonstrate compliance with Swiss regulations.
