Financial Inclusion and Crime Prevention Take Center Stage in Switzerland

Government Proposes New Measures to Combat Money Laundering

The Swiss government has launched a consultation process on proposed new measures to combat money laundering, aiming to maintain the country’s reputation as a trustworthy and competitive financial center.

Strengthening Anti-Money Laundering Framework

According to international bodies, Switzerland’s current anti-money laundering framework is generally considered good overall, but there are still gaps that need to be addressed. The proposed changes aim to strengthen the framework by:

• Creating more transparency in the financial system by requiring companies and other legal entities to disclose information about their beneficial owners
• Enabling authorities to better determine who is really behind a company or other legal entity, thereby preventing money laundering and terrorist financing, and facilitating prosecution

Central Register for Beneficial Owners

To achieve this goal, the Swiss government plans to introduce a central register where companies and other legal entities must enter details of their beneficial owners. This will help authorities:

• Identify who is really behind a company or other legal entity
• Prevent money laundering and terrorist financing
• Facilitate prosecution

Due Diligence Obligations

Additionally, due diligence obligations under money laundering law will also apply to certain advisory activities, such as legal advice, that involve an increased risk of money laundering.

Strengthening Prevention and Fight Against Financial Crime

The revision is expected to strengthen the prevention of and fight against financial crime in Switzerland, while ensuring the country remains a trustworthy and competitive financial and business location.

Public Consultation and Next Steps

The government’s proposals will now enter into public consultation, with a bill to be submitted to parliament in 2024.