# VSB 20 Art. 46 — Duty to repeat due diligence with respect to this code of conduct in the event of doubts - **Rubric (DE):** Wiederholung der Sorgfaltspflichten dieser Standesregeln bei Zweifeln - **Rubric (EN):** Duty to repeat due diligence with respect to this code of conduct in the event of doubts - **Chapter:** 5. Kapitel — Delegation und Überwachungsvorschriften (3. Abschnitt: Wiederholungspflichten) - **Scope:** Banks & securities firms (incorporated via [[GwV-FINMA Art. 35 - Identification, controlling person and beneficial|GwV-FINMA Art. 35]]) - **Status:** In force (since 1 January 2020) ## Description The bank must repeat the identification of the contracting partner and the establishment of the controlling person (*Kontrollinhaber*) or of the beneficial ownership if doubts arise whether (a) the details given on the contracting partner's identity are correct, (b) the controlling person is still the same, (c) the beneficial owner is still the same, or (d) the declarations on Formular A, I, K, R, S and T are correct, and these doubts could not be removed by appropriate clarification (Abs. 1). The bank must terminate the ongoing business relationships with the contracting partner as soon as possible if it finds that it was deceived in the identification, that knowingly false details were given on the controlling person or beneficial owner, or that doubts about the contracting partner's details persist after the procedure under Abs. 1 (Abs. 2). The relationship may no longer be terminated once the conditions of the reporting duty (Art. 9 GwG) are met (Abs. 3). ## Context & interpretation The SBA commentary states that Art. 46 must be kept clearly apart from the GwV-FINMA, which sets other duties (e.g. monitoring and clarification of unusual transactions); a breach of the GwV-FINMA is not automatically a breach of the VSB. Doubts may arise at the start of or during the relationship. If appropriate clarification removes the doubts, no new Formular A, I, K, S or T need be obtained. It states that, according to the practice of the VSB supervisory commission, all business relationships must be terminated, not only those to which the suspicion relates. ## FATF - [[FATF R.10 - Customer due diligence|FATF R.10]] — repeating identification where doubts arise about the data or declarations obtained, and terminating the relationship where doubts persist. ## Swiss counterparts - [[GwV-FINMA Art. 69 - Renewed identification or establishment|GwV-FINMA Art. 69]] — parallel rule for GwV-FINMA Title 5 entities on repeating identification or establishment when doubts arise; it does not list the forms and contains no termination rule (see GwV-FINMA Art. 70). - [[GwG Art. 5 - Repetition of identification - re-establishing|GwG Art. 5]] — statutory basis: Abs. 1 requires identification or establishment to be repeated where doubts arise during the business relationship; Abs. 2 (re-establishing the beneficial owner in redeemable insurance) has no counterpart in Art. 46. - [[GwV-FINMA Art. 70 - Termination of business relationship|GwV-FINMA Art. 70]] — termination where doubts persist after the repetition procedure or knowingly false details are suspected, in compliance with Art. 9b GwG and Art. 12a and 12b GwV; VSB Art. 46 Abs. 2 requires termination "as soon as possible" and Abs. 3 bars termination once the reporting duty applies. - [[GwG Art. 9 - Duty to report (to MROS)|GwG Art. 9]] — reporting duty referred to in Abs. 3. ## Part of - [[VSB 20]] ## Further AMLR connections - [[AMLR Art. 19 - Application of CDD|AMLR Art. 19]] — VSB Art. 46 Abs. 1 lit. a requires repeating identification where doubts about the contracting partner's identity details persist after clarification; AMLR Art. 19(1)(e) triggers CDD on such doubts. *(direct)* - [[AMLR Art. 21 - Inability to comply with CDD|AMLR Art. 21]] — VSB Art. 46 Abs. 2 requires terminating the relationship if the bank was deceived on identity, was knowingly given false controlling-person or beneficial-owner details, or doubts persist after repeating the procedure; Abs. 3 bars termination once the GwG Art. 9 reporting duty applies, whereas AMLR Art. 21(1) requires termination and consideration of a suspicious transaction report. *(related)* - [[AMLR Art. 26 - Ongoing monitoring|AMLR Art. 26]] — VSB Art. 46 Abs. 1 requires repeating controlling-person and beneficial-owner establishment when doubts arise whether they remain the same and the doubts cannot be dispelled by clarification, an event-driven refresh; AMLR Art. 26(3) triggers on any change of circumstances or relevant fact, not only doubt. *(related)* ## Sources - VSB 20 (Vereinbarung vom 13. Juni 2018, in force 1.1.2020), Art. 46 - SBVg Kommentar zur VSB 20 (2020), Art. 46