KYC evolved: What’s next for Wealth &
Private Banking

McKinsey - Future of KYC in Wealth roundtable

Bär & Karrer will provide a regulatory outlook. The presentation covers five key topics:

• FATF 2023 vs. 2025 Recommendations: The revised guidance now actively encourages simplified CDD for lower-risk scenarios and narrows the non-face-to-face risk factor to cases lacking appropriate mitigation measures.
• FINMA CDD Developments: Updates on stablecoins and AMLA duties, revised guidance on video/online identification aligned with the upcoming Swiss E-ID Act, and heightened scrutiny of PEPs and emerging-market clients.
• EU AMLA vs. Swiss CDB 20: A side-by-side comparison covering KYC scope, digital identity tools, beneficial ownership transparency, ongoing monitoring, and risk-based vs. rule-based approaches.
• AI Governance (FINMA 08/2024): Key principles on AI risk management, accountability, explainability, and documentation, along with practical use cases such as fraud detection, transaction monitoring, and sanctions screening.
• Data Protection vs. AML: The tension between data minimization principles (GDPR/Swiss FADP) and AML retention obligations, including Switzerland's 15-year retention period.