Switzerland Plans Tougher Anti-Money Laundering Rules

The Swiss Government is in the process of formulating new anti-money laundering regulations that are expected to set a higher standard compared to the rest of Europe, reports Finextra. These forthcoming rules will impose greater accountability on lawyers, consultants, and banks when it comes to reporting, scrutinizing, and managing risks. Additionally, they will enhance oversight of legal entities like trusts. The plan is to present these regulations to the parliament in 2024 after a period of consultation.

Switzerland has traditionally been viewed as a destination where criminals hide their assets, but the country is actively working to change this perception. It currently engages in the exchange of bank account information with more than 100 countries. Despite these efforts, there is continued international pressure for greater transparency in corporate ownership, particularly concerning the concealed identities of ultimate beneficiaries.

If these new rules are adopted, lawyers, accountants, and other business consultants involved in establishing trusts, holding companies, or arranging real estate transactions will be subjected to due diligence requirements and reporting obligations. There will also be stricter mandates for evaluating and managing the risks associated with potential sanctions violations by clients, which has gained significant global attention since Russia's invasion of Ukraine.

In addition to these regulations, there is a proposal for the creation of a central registry to track the legal ownership of entities. This registry would be managed by the Federal Department of Justice and Police and would provide information on the beneficial owners of companies and other legal entities. A department within the finance ministry would be responsible for verifying the registry's accuracy and, if necessary, imposing sanctions.

Under the proposed rules, all future real estate transactions would undergo due diligence scrutiny. Furthermore, cash payments exceeding 15,000 Swiss francs ($17,055.14) for precious metals and gemstones, such as gold and diamonds, would be subject to anti-money laundering checks, a significant reduction from the current threshold of 100,000 francs.