Compliance, nominee services and fiduciary management are related to each other and there is a trade-off between confidentiality, costs and security.
Anti money laundering legislation: persons or companies that act as a financial intermediary have to comply with legal requirements, and this is enforced by the state with threat of sanctions. Since we have not decided on the law and cannot change it, our opinion about the laws is irrelevant.
Therefore, we ask our customers: please do not debate about money laundering laws with us, but prepare information to fill in the papers:
- Bring a copy of your passport/ID, we have to store it
- Filling in the form to declare the beneficial owner
- Filling in the form “profile of the business “: origin of the assets and use of assets, explanation of your business activities
- Filling in the form about the risk of money laundering
- Inform us about changes of persons or changes of business, so that the organization, who periodically performs money laundering examinations with us, will not find any deviation between the information on the forms and the actual transactions.
In Malta, the Prevention of Money Laundering Act and the Prevention of Money Laundering and Funding of Terrorism Regulations are supplemented by the Implementing Procedures issued by the FIAU. The Implementing Procedures provide an interpretation and need to be observed. The system is based on the fourth Anti Money Laundering Directive of the EU. The fifth Anti Money Laundering Directive of the EU has to be implemented until January 2020, and there will be provisions about virtual currencies, prepaid cards and disclosure of beneficial owners.
In Switzerland, the FINMA is in charge of AML, the regulations are “Geldwäschereigesetz” (GWG) and Geldwäschereiverordnung (GwV). The latter has been revised and adapted to the fifth Anti Money Laundering Directive of the EU, and it will be valid from beginning of 2020. There will be increased obligations of financial service providers to monitor global risk and a lower threshold for cash transactions of 15000 CHF.
In Slovakia, the Anti Money Laundering Act has been revised (Act No. 297/228) and is effective since July 2018. It contains extended obligations to identification and to register the beneficial owner, which will soon have to be registered in the commercial register, too.
Fiduciary management: is sometimes a legitimate way to do business, if the client does not want to appear, for example if there is a competition clause in a work contract or if sales of other products are forbidden in an exclusive agency agreement. Trust mandates are widely used but are not always the best solution and create high costs.
If trusteeship is nevertheless required, there are solutions. Such mandates as a financial intermediary are not administrated by Zugimpex, but by another company of our group which periodically undergoes all required money laundering examinations and which has to write all the necessary documentation.
(updated July 2021)