Compliance & Reporting

A demanding regulatory framework

Trust administration in Switzerland operates within one of the most rigorous regulatory frameworks in the world. As a professional trustee licensed by FINMA (the Swiss Financial Market Supervisory Authority) and supervised by SO-FIT (the supervisory body for trustees), Swiss Trustee is subject to strict obligations regarding compliance, anti-money laundering and the automatic exchange of tax information.

This regulatory rigour, far from being an obstacle, constitutes a major advantage for our clients. It ensures that trusts administered from Switzerland meet the highest international standards, minimising regulatory and reputational risks.

Automatic Exchange of Information (CRS)

The Common Reporting Standard (CRS), developed by the OECD, requires Swiss financial institutions and trustees to collect and transmit annually to the Federal Tax Administration (FTA) financial information relating to persons fiscally resident in partner states. This information is then automatically exchanged with the tax authorities of the countries concerned.

For a trust, the reported information includes the identity of the settlor, beneficiaries (actual and potential in certain cases), protectors and any other person exercising control over the trust, as well as account balances, income and sale proceeds. Our team ensures the collection, verification and transmission of this information within regulatory deadlines.

FATCA (Foreign Account Tax Compliance Act)

US FATCA legislation imposes specific reporting obligations on trusts with US connections — whether US person beneficiaries, US assets or contributions from the United States. Under the intergovernmental agreement between Switzerland and the United States, the Swiss trustee must identify US persons among the trust parties and report the required information to the FTA, which transmits it to the IRS.

Managing FATCA obligations requires specialist expertise, particularly in determining the trust's classification (grantor trust vs non-grantor trust) and the applicable forms (W-8BEN-E, Form 3520, etc.). Our team commands these specificities and works in coordination with US tax specialists to ensure full compliance.

Anti-Money Laundering (AMLA/KYC)

As a financial intermediary within the meaning of the Anti-Money Laundering Act (AMLA), Swiss Trustee applies rigorous Know Your Customer (KYC) procedures and continuous monitoring:

• Identification and verification: Verification of the identity of the settlor, beneficiaries, protectors and beneficial owners by means of official documents.
• Risk profiling: Assessment of the risk profile of each business relationship and application of proportionate due diligence measures.
• Transaction monitoring: Continuous monitoring of trust operations to detect any atypical or suspicious activity.
• Reporting: Obligation to report to MROS (Money Laundering Reporting Office Switzerland) any suspicious transaction or relationship showing signs of money laundering.
• Document retention: Archiving of all documents and data relating to the verifications performed for a minimum period of 10 years.

FINMA reporting and audits

Swiss Trustee is subject to regular reporting obligations to SO-FIT and FINMA. Our activities are audited annually by an approved auditing body, which verifies compliance with legal and regulatory provisions, the adequacy of our internal procedures and the quality of our governance. This continuous supervision provides our clients with the assurance that their trust is administered to the highest standards.