Trustees’ regulatory challenges (FinIA, AMLA, Sanctions): appropriate organisation, key audit focus areas, FINMA’s expectations

Criteria for selecting service providers, including custodian banks, management companies etc.
Transaction monitoring: specific challenges for non-administered structures
Sanctions risk analysis: FINMA expectations and trustee-specific risks

Appropriate Organization (Internal Control System, Reporting, Outsourcing)

• Who is a Trustee under FINIA and therefore needs a trustee-license?
• Which trustee services are exempt from FINIA?
• What are the requirements for someone to be allowed to work as a (licensed) trustee?
• Does a trustee have to have to have a trustee company or is a sole proprietorship sufficient?
• What are the financial requirements?
• Can a trustee also offer additional financial services with a trustee-license, and if so, which ones?
• How does the licensing procedure work (Supervisory Organizations and FINMA)?
• Requirements regarding appropriate organization under FINIA (points of attention and changes requiring authorization/notification)
• Delegation of essential tasks (criteria for selecting service providers, including custodian banks, management companies, etc.)
• Internal control system (key controls, frequency, responsibilities)
• Reporting to supervisory bodies and involvement of senior management
• Supervision and audits of licensed trustees

AML Issues (Updates and Key Audit Focus Areas)

• Verification of the contracting party’s identity and of beneficial owners (existing structures vs. new clients)
• Periodic review of business relationships (consolidated approach to structures, frequency, and responsible departments)
• Transaction monitoring (specific challenges for non-administered structures)
• Money laundering risk analysis (FINMA expectations and inherent risks specific to trustees)

Sanctions Monitoring

• Sanctions risk analysis (FINMA expectations and trustee-specific risks)
• Expected monitoring system (screening frequency, lists to be checked)
• Structures presenting high risks of sanctions circumvention (creation of new structures, transfer of ownership interests, holding of operating companies, etc.)