Swiss banks and brokers will have to confirm a live person is behind online account openings that use the state e-ID or a qualified e-signature. The Swiss Financial Market Supervisory Authority (FINMA) issued the rules today (Thursday).The revised circular on video and online identification takes effect on November 1. FINMA says criminals open accounts remotely with forged IDs, or talk victims into opening accounts that are later used for illegal activity.In April, the regulator found that eight of 19 institutions it surveyed had no dedicated digital fraud policy.London's trading industry is coming home!Liveness detection confirms that the applicant is a physically present, living person and not a photo, video or other manipulation, FINMA said.It was already required when a client onboards with a photographed ID document. The revision extends it to qualified electronic signatures and to the new e-ID.The Liveness Rule Came From the ConsultationFINMA's draft, open for comment from December 16 to February 27, did not require the check on those two routes. Several respondents warned of forgeries made with AI tools and of deepfake-based identity theft, and proposed adding it, according to the regulator's consultation report.The same tools turn up in investor fraud elsewhere. Australia's regulator cited AI deepfakes when it reported removing more than 19,400 scam sites in fiscal 2026.Swissquote Bank, which reported 1.22 million client accounts at the end of June and offers forex and CFD trading alongside banking, was among 24 named respondents."A resolute fight against fraud targeting the Swiss banking system requires measures" beyond the circular, Swissquote wrote in a February 26 letter signed by Chief Executive Marc Bürki.Swissquote proposed checking the IBAN behind a client's first transfer against lists of accounts linked to fraud. It also suggested a minimum first deposit set above the price of a mule account on the dark web.A third idea was face matching: comparing an applicant's face with those of existing clients, to catch one person opening accounts under several names.FINMA agreed that the circular sets a minimum and that institutions may need more, depending on their risks and business model. It declined a request, which Swissquote's letter also made, to say so in the text.PayPal and Twint Still Do Not CountA client identified online with an ID copy must also send money from an account in their own name at a bank in Switzerland, Liechtenstein or a qualifying member state of the Financial Action Task Force. Institutions can skip the transfer if they read the chip in a biometric ID.Some respondents asked FINMA to accept transfers from securities firms, card issuers, Twint, PayPal or crypto service providers. The regulator refused. It said a bank license comes with a supervisory and anti-money laundering framework that gives it a higher level of trust.Supervisors found that not all institutions check whether the transfer actually comes from a bank, FINMA's explanatory notes say. A payment from a UK authorized payment institution or an Irish e-money institution does not qualify.In the UK, e-money institutions posted the largest annual rise in suspected money mule account closures, at 164.6% in 2025, according to the Financial Conduct Authority.FINMA also dropped a "reverse" bank transfer from its draft after the Swiss Bankers Association warned that an applicant could forward the identification code to a third person.E-ID Accepted Online but Not on VideoThe state e-ID can replace a physical document in online onboarding, but not in video identification. FINMA said the e-ID has no machine-readable zone or QR code, and no copy of it can be made and archived.The regulator timed the revision so institutions can use the e-ID from the day the federal E-ID ordinance takes effect. Swiss voters approved the E-ID Act in a referendum in September 2025.IDs that carry a QR code, such as the Swiss driving license, now count the same as those with a machine-readable zone. Institutions may also check a client's address through digital processes, including geolocation.Respondents had called utility bills easy to forge, and Swissquote said fraudsters build fake identities from data on social networks and from leaks. In September, Revolut said it handed customer data to a third party posing as a government agency.Firms onboarding through qualified electronic signatures have until November 1, 2027 to add the address check and liveness detection.Electronic IDs issued in the European Union under the eIDAS regulation remain outside the circular. FINMA said recognizing them would first need technical and regulatory groundwork at international level.This article was written by Damian Chmiel at www.financemagnates.com.