1. Acceptable KYC methods for AML/CFT purposes:

Pursuant to Article 6(4) subsection 1-4 of the Financial Markets Anti-Money Laundering Act (FM-GwG - Finanzmarkt-Geldwäschegesetz), the following remote identity verification methods are permissible:

1. the presentation in a video-based electronic procedure of the official photo identification document (online identification),
2. a statutorily prescribed procedure, which ensures that the same information would be made available as would be if an official photo identification document were presented (electronic ID card),
3. the submission of a legally binding declaration by the customer in the form of a qualified electronic signature in accordance with point 12 of Article 3 of Regulation (EU) No 910/2014 or the delivery of a legally binding declaration by the obliged entity via registered mail to the customer address given as the place of residence or place of incorporation [...]; or
4. the first payment during transactions is settled through an account opened in the customer's name with a credit institution [...] and copies of customer documents are available, on the basis of which the information provided by the customer or the natural person authorised to represent the customer may be verified in a credible manner. In lieu of such copies, a written declaration from the credit institution through which the first payment is intended to be made shall be sufficient for determining and verifying the identity of the customer as defined in this federal act or Directive (EU) 2015/849".

In further implementation of Article 6(4), the FMA Online Identification Regulation provides for two means of video-based online identification:

• live video conference with a human operator, including taking screenshots of the customer's identity document and face, requesting the customer to move their head in a specific manner and communicate certain information, analysing the ID images, etc.; and

• biometric identification processes, or "online identification processes, in which the entire online identification process or individual steps thereof are conducted by means of an automated electronic process without the participation of a staff member" - corresponding to a liveness check along with face match and ID authenticity analysis, provided that only an ID "for which the content has been electronically signed by the issuing authority" shall be acceptable.

2. Additional use cases for Qualified Signing:

• Civil Transactions

Section 886 of the Austrian Civil Code (Allgemeines Bürgerliches Gesetzbuch or ABGB) states that a QES fulfills the requirement of written form and is equivalent to a handwritten signature.

Furthermore, certain transactions or contracts require a QES compulsorily where written form is demanded by law and there is no handwritten signature, for example:

• stand-alone promises to fulfill a third party's obligation if made by individuals outside their commercial or professional activities;
• agreements concerning Austrian real estate, e.g. mortgage agreements, sale and purchase agreements;
• certain documents concerning Austrian limited liability companies;
• powers of attorney concerning transactions with special-form requirements, e.g. sale of real estate, establishment of a limited liability company, powers of sale under real estate mortgages or under share pledge agreements, voting proxies under a share pledge agreement; and
• certain sureties and guarantees.

• Employment Agreements with Apprentices

QES is required for signing employment agreements with apprentices according to the Vocational Training Act (Berufsausbildungsgesetz), section 20(7).

• Ownership of Employee Inventions agreements

QES is necessary for agreements regarding ownership of inventions made by employees as specified in the Austrian Patent Act.

• Administrative and judicial documentation

AES is mandated for documents created by judiciary and administrative authorities under the Judicial Organization Act, Section 89.

1. Acceptable KYC methods for AML/CFT purposes:

Pursuant to Art. 27(1) of the Law on the prevention of money laundering and terrorist financing and on the restriction of the use of cash ("AML Law"), reporting entities are required to verify the identity of their customers against:

1. one or more supporting documents or reliable and independent sources of information enabling them to confirm [the identification data such as full name, date of birth, etc.];
2. where applicable, the information obtained through electronic identification means such as those provided or recognised within the authentication service as referred to in Articles 9 and 10 of the Law of 18 July 2017 on electronic identification [implementing the eIDAS regulation and providing a regulatory framework for electronic identification in connection with digital public services in Belgium], confirming the identity of persons online;
3. where applicable, information obtained through relevant trust services referred to in Regulation 910/2014".

Additionally:

• Art. 28 of the AML Law provides a mechanism for remote identity verification by professional associations designated by the King, which are authorised to: "1° use the identification number from the National Register; 2° access the data of the National Register of natural persons referred to in Article 3 of the Law of 8 August 1983 establishing a National Register of natural persons; 3° make a paper or electronic copy of the information consulted in said Register";
• the National Bank of Belgium Object of the identification and identity verification guidance ("NBB Guidance") adopts a technologically neutral approach, emphasising that "neither the Anti-Money Laundering Law nor the Anti-Money Laundering Regulation of the NBB lists in a precise, uniform and prescriptive manner the supporting documents or the reliable and independent sources of information that can be used to fulfil the obligation to verify the identity of the persons involved", while nevertheless explicitly endorsing certain specific methods such as "electronic identification schemes notified in accordance with Article 9 of the eIDAS Regulation and meeting the requirements of "substantial" or "high" levels of assurance".

2. Additional use cases for Qualified Signing:

• Civil Code of Belgium , Art. 5.30, establishes the functional equivalence between an e-signature of any type and a handwritten signature: "the requirement of a writing is satisfied by a set of alphabetical signs or any other intelligible signs affixed to a medium which allows access to it for a period of time appropriate to the purposes for which the information is intended and which preserves its integrity, whatever the medium and the means of transmission".
• At the same time, QES is mandatory:
• as per Art. 8.15 of the Civil Code, for "authentic instruments drawn up, received or served in electronic form by a public or ministerial officer";
• as per Art. 763 of the Judicial Code, where "a record, report or other document is to be signed at the hearing by a person appearing at the hearing by videoconference";
• as per Art. 782 of the Judicial Code, where a judgment is established in electronic form;
• as per Art. 3bis of the Employment Contracts Act of 3 July 1978, for employment contracts (where there is no handwritten signature);
• as per Art. VII.78 of the Code of Economic Law, for consumer credit contracts (where there is no handwritten signature); etc.

1. Acceptable KYC methods for AML/CFT purposes:

Section 8 of the AML Act states that the first identification of a customer who is an individual should be performed with (i) the said customer present in person and (ii) the obliged entity "recording identification data and verifying them from an identity card should they be included thereon, and subsequently recording the type and serial number of the identity card, the issuing country or issuing authority and the card's validity; at the same time, [...] verifying the holder's appearance and the holder's facial image as pictured on the identity card".

However, Section 8a(1) provides for an alternative so long as the substituting solution is either compliant with Regulation (EU) No 910/2014 of the European Parliament and of the Council on electronic identification and trust services for electronic transactions in the internal market ("eIDAS Regulation") and the implementing regulations or prescribed by another legal act:

"An obliged entity may replace the process pursuant to section 8[...] by identification of a natural person who is a customer [...] performed by means of electronic identification which comply with the following:

a) technical specification, standards, and procedures for a high level of assurance given by the directly applicable regulation of the European Union regulating minimum technical specifications, standards and procedures for levels of assurance of means of electronic identification) and which is issued and applied pursuant to the qualified system in line with the Act on Electronic Identification, or

b) conditions pursuant to which means of electronic identification can be used for verification of identity required by a legal regulation or discharge of administrative responsibility outside the scope of the qualified system pursuant to the Bank Act".

Therefore, in order for Qualified Electronic Signatures (QES) to serve as an appropriate means of verification, they have to be integrated into an electronic identification scheme that adheres to the eIDAS standards for high assurance. The eIDs currently notified by the Czech Republic that meet this criterion are the National Electronic Identity Card and the digital eID scheme MojeID.

2. Additional use cases for Qualified Signing:

• Civil Code

As per § 561(1), handwritten signatures may in general be replaced with "mechanical means where this is customary", including e-signatures, provided that it should be possible to capture the content of the deed and identify the signatory subsequently. Furthermore, handwritten signatures are typically not legally required, meaning that, in most cases, any form of e-signature can be a substitute. Notwithstanding this, AES or QES may, in the absence of a "wet" signature, be recognized as stronger evidence compared to a simple e-signature where a contract or transaction must be drawn up in written form as per law, e.g.:

• agreement on cancellation of co-ownership of real estate or business enterprise (Section 1141 of the Civil Code);
• standalone acknowledgment of debt (Section 2053 of the Civil Code);
• power of attorney unless the representation is related only to a particular legal act (441 of the Civil Code);
• commercial agency agreement (Section 2483 of the Civil Code);
• contract on a lease of residential real estate and notice on termination of lease of residential real estate (Sections 2237 and 2286 of the Civil Code); etc.

• Act No. 297/2016 Coll on trust services for electronic transactions

As per §§5-6, only a QES may be used for electronic documents signed by a legal entity in relation to a public law signatory or another person in connection with the exercise of their powers.

1. Acceptable KYC methods for AML/CFT purposes:

Under Article R561-5-1 of the French Monetary and Financial Code, the following methods of remote verification are allowed:

• "an electronic identification means certified or attested by the National Agency for the Security of Information Systems in accordance with the level of guarantee, either substantial or high, set by article 8 of Regulation (EU) No 910/2014 of the European Parliament and of the Council of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market"; or
• "an electronic identification means issued within the framework of a scheme notified to the European Commission by a Member State of the European Union under the conditions provided for in paragraph 1 of Article 9 of this regulation and whose level of guarantee corresponds to the level either substantial or high set by article 8 of the same regulation".

If the methods listed above cannot be implemented, at least 2 measures out of those specified in Article R561-5-2 need to be selected instead:

• "obtain a copy of a document mentioned in 3° or 4° of article R. 561-5-1 [valid official document including the customer's photograph]";

• "implement measures to verify and certify the copy of an official document or an extract from the official register mentioned in 3° or 4° of Article R. 561-5-1 by a third party independent of the person to be identified [e.g., notaries]';

• "require that the first payment for transactions be made from or to an account opened in the client's name with a person mentioned in 1° to 6° bis of Article L. 561-2 [certain types of AML-regulated entities] that is established in a Member State of the European Union or in a State party to the agreement on the European Economic Area or in a third country imposing equivalent obligations in terms of the fight against money laundering and the financing of terrorism";

• "obtain confirmation of the customer's identity directly from a third party fulfilling the conditions set out in 1° or 2° of I of Article L. 561-7" [third party itself subject to AML/CFT laws and located in an EU/EEA country or a third country imposing obligations equivalent to those contained in the Code, including those related to exchange of personal information];

• "use a service certified as compliant by the National Information Systems Security Agency, or a certification body authorized by this agency, at the level of substantial guarantee of the requirements relating to proof and verification of identity, provided for in the appendix to the implementing regulation (EU) 2015/1502 of 8 September 2015";

• "collect an advanced or qualified electronic signature or a valid advanced or qualified electronic seal based on a qualified certificate or use a qualified electronic registered delivery service bearing the identity of the signatory or the creator of the seal and issued by a qualified trust service provider registered on a national trust list pursuant to Article 22 of Regulation (EU) No 910/2014 of July 23, 2014" (Art. R561-5-2, 1-6°).

2. Additional use cases for Qualified Signing:

• Articles 1366 and 1367 of the Civil Code of France provide a description of AES (advanced electronic signature), which is a default necessary alternative to handwritten signature for civil transactions;

• Décret n° 2017-1416 du 28 septembre 2017 relatif à la signature électronique establishes specific obligatory use cases for QES (where handwritten signature is not used):

• issuance of extracts or certificates by the Trade and Companies Register;
• submission of documentation from organisations / individual entrepreneurs to state registration authorities electronically (does not include business creation files);
• judgements drawn up on electronic media;
• interaction between the National Public Health Agency, National Commission for Medical Accidents, National Agency for the Safety of Medicines and Health Products and organisations accountable to them (documentation, contacts, transfer of information on medical confidentiality);
• conclusion of contracts related to energy saving operations;
• acts drawn up by notaries.

1. Acceptable KYC methods for AML/CFT purposes:

Pursuant to Section 12 of the German Anti-Money Laundering Act (GwG), the verification of a natural person's identity must be carried out on the basis of:

• (1) "a valid official identity document which includes a photograph of the holder and satisfies the passport and identification requirements in Germany, in particular a German passport, identity card or substitute of a passport or identity card, or a passport, identity card or substitute of a passport or identity card recognised or accepted under German provisions for foreign nationals" [the document must be presented on-site as per Section 13 if it is the only ground for establishing identity];
• (2) "an electronic proof of identity under section 18 of the Act on Identity Cards and Electronic Identification, section 12 of the eID Card Act or section 78 (5) of the Residence Act",
• (3) "a qualified electronic signature under Article 3 No. 12 of the [eIDAS Regulation]";
• (4) "a notified electronic identification scheme under Article 8(2)(c) [high level of assurance] in conjunction with Article 9 of Regulation (EU) No 910/2014"; or
• (5) "documents under section 1 (1) of the Regulation determining documents admissible for the identification of a person to be identified under the Money Laundering Act for the purpose of opening of a payment account".

Where the obliged entity relies on option (3), it must also ensure that "a transaction is executed directly from a payment account within the meaning of section 1 (3) of the Payment Services Supervision Act which is held in the name of the contracting party, with an obliged entity under section 2 (1) sentence 1 no. 1 or no. 3 or with a credit institution located in [a reliable country]".

Additionally, Circular 3/2017 (GW) - video identification procedures by BaFIN prescribes a detailed video conference procedure, with the active participation of a human operator, as an alternative means of remote KYC.

2. Additional use cases for Qualified Signing:

• the German Civil Code (BGB), Arts. 126 and 126(a), generally allows the use of QES (as well as other electronic signatures) in civil transactions as an alternative to handwritten signatures. Art. 126(a) further emphasizes that, if a document that the law normally prescribes to be in writing is drawn up electronically, the handwritten signature can only be replaced with QES. Examples of such documents could include, e.g.:
• real estate purchases;
• notarial acts;
• consumer loan agreements;
• contracts of surety;
• acknowledgement of debt; etc.
• the Administrative Procedure Act (VwVfG), Art. 3a, likewise specifies (in relation to electronic applications submitted to government agencies) that legally required written form can be substituted with electronic form, provided that the latter is affixed with a QES;
• the Code of Civil Procedure, Art. 130(a), similarly provides that documents such as "preparatory pleadings and their attachments, applications, and declarations by the parties to be submitted in writing, as well as information, statements, expert opinions, translations, applications and declarations by third parties to be submitted in writing" may be filed electronically so long as they are signed by a QES.

1. Acceptable KYC methods for AML/CFT purposes:

As per Part II, Section III of the Bank of Italy Provisions on Customer Due Diligence implementing the Legislative Decree ( Disposizioni in materia di adeguata verifica della clientela per il contrasto del riciclaggio e del finanziamento del terrorismo as amended on June 13, 2023):

• collection of a notarized identity document / an identity document authenticated with a QES - "[a flow where] identification data result from [...] authenticated private deeds or qualified certificates used for the generation of a digital signature associated with electronic documents";

• verification of digital identity with a "high" assurance level as per the national legislation or the eIDAS regulation / a digital identity with an eIDAS-compliant QES embedded - "[the customer must be] in possession of a digital identity, with a maximum level of security, within the System referred to in Article 64 of Legislative Decree No. 82 of 7 March 2005 and the related implementing legislation, or of a digital identity with a maximum level of security or a certificate for the generation of a digital signature, issued within the scope of an electronic identification regime included in the list published by the European Commission pursuant to Article 9 of Regulation (EU) No. 910/2014";

• "methods identified in Section VIII for remote operations":
• Identity Document Verification combined with at least one additional check, including, but not limited to, Liveness Detection and Facematching, Video Identification, and Penny Drop, to mitigate fraud risks, chosen in accordance with the risk-based approach: "In cases of remote operation, the recipients:

a) acquire the identification data of the customer and the executor and verify it on a copy - obtained by fax, post, in electronic format or with similar methods - of a valid identity document, in accordance with current legislation;

b) carry out checks in addition to those provided for in Section V on the data acquired, according to the most appropriate methods in relation to the specific risk. By way of example, the following methods are indicated: telephone contact on a fixed line (welcome call); sending communications to a physical address with return receipt; transfer made by the customer through a banking and financial intermediary based in Italy or in an EU country; request to send countersigned documentation; verification of residence, domicile, activity carried out, through requests for information to the competent offices or through on-site meetings, carried out using its own personnel or third parties.

In compliance with the risk-based approach, recipients can use feedback mechanisms based on innovative and reliable technological solutions (e.g. those that provide forms of biometric recognition), as long as they are assisted by robust security measures [...]".

2. Additional use cases for Qualified Signing:

• as per Art. 21 of the Italian Digital Administration Code - electronic signature of all contracts listed under Art. 1350, No. 1-12 of the Italian Civil Code (unless such contracts are notarized):

• contracts that transfer the ownership of immovable property;
• contracts that constitute, modify or transfer the right of usufruct on immovable property, the right of surface, the right of the grantor and the emphyteuta;
• contracts that constitute the community of rights indicated by the preceding numbers;
• contracts that constitute or modify predial servitudes, the right of use on immovable property and the right of habitation;
• deeds of renunciation of the rights indicated by the preceding numbers;
• contracts for the redemption of the emphyteutic land;
• contracts of antichresis;
• contracts for the lease of immovable property for a period exceeding nine years;
• company or association contracts which grant the enjoyment of immovable property or other immovable real rights for a period exceeding nine years or for an indefinite period;
• deeds constituting perpetual or life annuities, except for the provisions relating to State income;
• deeds of division of immovable property and other immovable real rights;
• transactions which have as their object disputes relating to the legal relationships mentioned in the preceding numbers.

• electronic signature of other types of contracts / deeds / binding documents where explicitly required by law, e.g.:

• power of attorney for litigation.

1. Acceptable KYC methods for AML/CFT purposes:

According to Dutch AML/CFT laws and regulations, identity verification in respect of a natural person may be carried out on the basis of documents, data or information from a reliable and independent source, with the following caveats:

• as per Art. 4(1) of the Regulation implementing the Anti-Money Laundering and Anti-Terrorist Financing Act ("Wwft Implementing Regulation"), the documents suitable for identity verification are: a valid passport; a valid Dutch identity card; a valid identity card issued by the competent authority in another EU Member State and bearing a photograph and the name of the holder; a valid Dutch driving license; a valid driving license issued by the competent authority in another EU Member State and bearing a photograph and the name of the holder; travel documents for refugees and foreigners; alien documents issued under the Aliens Act 2000; or a sufficiently reliable means of identification;
• the " Q&A Electronic identification means and client identification " section on the De Nederlandsche Bank (DNB) website further clarifies that an eID shall also be considered sufficiently reliable when it meets the "substantial" or "high" level of assurance as per the eIDAS Regulation;

• likewise, as per section 5.2.5, point (i) of the General Guideline on the Anti-Money Laundering and Anti-Terrorist Financial Act by the Ministry of Finance, applicable to all AML/CFT-regulated entities:

• the list of documents provided under Art. 4(1) of the Wwft Implementing Regulation is not exhaustive;
• a "sufficiently reliable means of identification" as per Art. 4(1) of the Wwft Implementing Regulation is defined as "a means of identification that meets the assurance level "substantial" or "high" as referred to in [the eIDAS Regulation]";
• "other means of identification can also be used, but it must be assessed on a case-by-case basis whether they meet the reliability level. It is up to the institution to determine whether this is the case";

2. Additional use cases for Qualified Signing:

• As a general rule, Book 3 Article 15a (3:15a BW) of the Dutch Civil Code (Burgerlijk Wetboek) states that "electronic signature [regardless of whether is it a QES, AES, or simple e-signature] has the same legal consequences as a handwritten signature, if the method of signature used for the electronic signature is sufficiently reliable, having regard to the purpose for which the electronic signature is used and all other circumstances of the case". For certain types of contracts and transactions (such as mortgage deeds or final wills), the notarial form may be required, in which case no electronic signature serves as a substitute.
• Other laws may also establish possible uses of electronic signatures, without specifying any certain type of signature:

• Tax Act (Belastingwet) (Article 6.5): filing tax returns;
• Applications according to Social Security Act (Wet structuur uitvoeringsorganisatie werk en inkomen - SUWI) (Article 4:2);
• Civil Registration Act (Wet op de gemeentelijke basisadministratie persoonsgegevens) (Article 4:9): specifies the need to update information using an electronic signature;
• Tenders Act (Aanbestedingswet) (Article 2.98): Describes the possibility of using an electronic signature for tender applications.

1. Acceptable KYC methods for AML/CFT purposes:

Pursuant to Article 37. 1 of the Act of 1 March 2018 on counteracting money laundering and financing of terrorism the verification of the identity of a customer [or a person acting on its behalf and the beneficial owner] shall be based on confirmation of determined identification data based on:

• A document confirming the identity of a natural person,
• A document containing valid data from the extract of the relevant register or
• Other documents, data or information originating from a reliable and independent source, including, whereavailable, electronic identification means or relevant trust services as set out in Regulation (EU) No 910/2014.

Furthermore, as per the official stance of the Polish Financial Supervisory Authority (Komisja Nadzoru Finansowego), the mere fact that a customer is not physically present for identity verification is not necessarily indicative of high risk where "the associated increased risk of money laundering and financing of terrorism has [...] been otherwise mitigated, including, through the use of notified electronic identification means adequately to the substantial security level, referred to in Regulation (EU) No. 910/2014 of the European Parliament and of the Council of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/93/EC (EU OJL257, 28.8.2014, p. 73), or the requirement to use a qualified electronic signature or a signature confirmed by the ePUAP trusted profile".

2. Additional use cases for Qualified Signing:

• Civil Code

Generally, only QES is considered equivalent to a "wet-ink" signature, meaning that other forms of e-signature do not suffice where written form is required by law for a contract or transaction and the said contract or transaction needs to be drawn up electronically (see Art. 78(1) of the Civil Code). However, where written form is not mandatory, both AES and simple e-signatures are normally recognized.

Examples of contracts / transactions requiring written form:

• debt take-over contract (Art. 522 of the Civil Code);
• subcontracting of construction works (Art. 647 of the Civil Code);
• termination of tenancy (Art. 678 of the Civil Code);
• leasing contract (Art. 709-2 of the Civil Code);
• loan contact above a certain value (Art. 720 of the Civil Code);
• annuity contract (Art. 903-1 of the Civil Code); etc.

• Other specific use cases:

• medicine prescriptions issued electronically (Art. 96a of the Pharmaceutical Law of 6 September 2001);
• confirmation of an ePUAP trusted profile by the applicant, which consists in verifying the compliance of the data contained in the user profile with the actual state and granting rights resulting from having an ePUAP trusted profile, as well as extending the validity and invalidation of the ePUAP trusted profile (Art. 20c of the Act of 17 February 2005 on the computerization of the activities of entities performing public tasks);
• electronic documents sent to and issued by customs authorities (Art. 10b of the Customs Law of 19 March 2004);
• application for the issue of a certified copy of a civil status record (Arts. 28 and 48, Act of 6 August 2010 on identity cards); etc.

1. Acceptable KYC methods for AML/CFT purposes:

Based on Article 12(1) of the Prevention of Money Laundering and Terrorist Financing Law 10/2010 of 28 April and Article 21 of the Regulation on the Prevention of Money Laundering and Terrorist Financing approved by Royal Decree 304/2014 of 5 May, the following non-face-to-face identity verification methods are acceptable:

• "qualified electronic signature regulated by Regulation (EU) No. 910/2014 of the European Parliament and of the Council of 23 July 2014 on electronic identification and trust services for electronic transactions in the internal market and repealing Directive 1999/93/EC";
• "the first deposit comes from an account in the name of the same client opened in an entity domiciled in Spain, the European Union or equivalent third countries";
• "the customer's identity is evidenced by means of a copy of the relevant identity document [...], provided that the copy is issued by a notary public";
• "the customer's identity is evidenced by other secure procedures for customer identification in remote transactions, provided that such procedures have been previously authorised by the Executive Service of the Commission for the Prevention of Money Laundering and Monetary Offences [this includes (i) SEPBLAC specifications regarding authorization of remote identification by videoconference, 12 February, 2016, and (ii) SEPBLAC specifications regarding authorization of remote identification by video recording, 11 May, 2017]".

Notably, except where QES is used, an ID copy needs to be obtained from the customer within one month of the establishment of the business relationship.

2. Additional use cases for Qualified Signing:

• Spanish Law 6/2020 of November 11, regulating certain aspects of electronic trust services (Art. 326), establishes different statuses for qualified (QES is required) and non-qualified (AES is required) trust services used in private documents;
• Law 39/2015 of October 1, on the Procedural Procedure of the Public Administration Community (Arts. 9 and 10), allows to use QES (as well as AES) to carry out administrative procedures (such as submission of applications or requests) electronically;
• Law 24/2001 of December 27, on fiscal, administrative, and social order measures (Art. 109), prescribes QES for notaries and registrars of commercial and personal property;
• Law 18/2011 of July 5, regulating the use of information and communication technologies in the Administration of Justice (Art. 14), specifies that QES or AES may be used for procedural acts carried out by judicial bodies and justice professionals.

1. Acceptable KYC methods for AML/CFT purposes:

The Swiss Financial Market Supervisory Authority ("FINMA") Circular 2016/7 on "Video and online identification" provisions on the acceptable KYC procedures as regards natural persons are largely accumulated in Section III(A) ("Video identification on a par with in-person identification for individuals") and Section IV ("Online identification"):

• Section III(A) requires "audio-visual real-time (live transmission) communication" and active verbal interaction between a user and the obliged entity, along with the analysis of the user's ID as detailed below;

• Section IV(B)(a) ("Electronic copy of an identification document authenticated by the financial intermediary") allows (subject to certain conditions) for an automated KYC flow. This includes, inter alia, nuanced analysis of the user's identity document; in particular, the obliged entity must: (i) read and decrypt the document's machine-readable zone; (ii) examine the document's optical security features, such as holographic-cinematic marks or printed elements with latent image / tilting effects; (iii) match the document with the other data provided by the user; and, (iv) if not familiar with the document, compare it with reference samples from an ID database referring to security features, character type and size, and layout;

• Section IV(B)(b) ("Electronic copy of an identification document with qualified electronic signature") prescribes the following procedure: "the financial intermediary obtains an electronic copy of all the relevant pages of the contracting party's identification document transmitted electronically by the contracting party and an authentication by means of a qualified electronic signature from a provider of certification services recognised in Switzerland under the Federal Certification Services Act (ZertES; SR 943.03). The financial intermediary checks the information in the identification document against the qualified electronic signature profile". Importantly, to date, no agreement on the mutual recognition of electronic signatures has been concluded between Switzerland and another third country (or the European Union). Where no such agreement exists, a qualified electronic signature based on a qualified certificate under foreign law is not recognized as being equivalent to a qualified electronic signature under Swiss law.
• finally, as per Section IV(B)(c) ("Digital authentication"), "the authentication provider as defined in Article 49 AMLO-FINMA can also issue confirmations of authenticity electronically to the financial intermediary. To do so, the provider makes an electronic copy of all the relevant pages of the identification document, inseparably attaches a confirmation that its contents match those of the identification document, adds a digital timestamp and an employee signature to the file, and provides it to the financial intermediary".

2. Additional use cases for Qualified Signing:

• Swiss Code of Obligations or Obligationenrecht, Art, 14, establishes QES as an equivalent to the handwritten signature where the latter is legally required - including, for example, the following transactions and contractual relationships:
• applications to the commercial register;
• assignment of rights;
• subscription forms regarding the subscription of newly issued shares;
• pledge of claims;
• promises of a gift;
• incorporation of an association;
• contract of surety (subject to certain conditions);
• agreements on contribution in kind;
• transfer declaration of registered or uncertified securities; etc.
• Federal Law on Debt Enforcement and Bankruptcy (SchKG), Art. 33a, considers QES necessary for documents "submitted electronically to the debt collection and bankruptcy offices and the supervisory authorities".