KYC duties stem from the Swiss Anti-Money Laundering Act (GwG), the EU's 6th Anti-Money Laundering Directive (6AMLD), and the FATF (Financial Action Task Force) recommendations. Banks, brokers, insurers, crypto exchanges and even some real-estate agents must collect proof of identity (passport or national ID), proof of address (utility bill less than three months old), declared source of funds and — for politically exposed persons — additional documentation.
Onboarding can be completed remotely via video identification (a short call where you show your passport on camera) or via courier-delivered identity verification. Once onboard, banks run ongoing monitoring: unusual transactions trigger automated alerts and may require you to explain a payment — for example, a sudden CHF 80,000 incoming wire to a salary account.
Always provide accurate KYC information up front. Refusing or providing false data leads to account freeze, mandatory reporting to financial intelligence units (MROS in Switzerland) and potential closure of the relationship. Documenting the source of large amounts (inheritance certificate, sale contract, dividend statement) before depositing them avoids weeks of friction.
A new client opens a Swissquote brokerage account online. She uploads her passport and a utility bill, completes a 4-minute video-ID call with an external provider, declares 'salary and savings' as source of funds, and the account is approved within two business days. A subsequent CHF 250,000 incoming wire prompts a request for the inheritance certificate, which she provides via secure upload.