As one of the world’s leading financial centres, Switzerland not only enjoys a good reputation, it also bears a special responsibility: it must endeavour to combat money laundering as effectively as possible while meeting international standards.

The latest reform to strengthen its anti-money laundering apparatus represents a decisive turning-point for Switzerland. At its heart are plans to create a national transparency register to record the beneficial owners of legal entities and subject advisors to the Anti-Money Laundering Act. These will have a lasting positive impact on the Swiss financial centre’s credibility. The proposed measures are not merely of national scope; they are also essential for convincing the Financial Action Task Force (FATF) in the upcoming country assessment and thereby maintaining Switzerland’s reputation in the international context.

Greater transparency: a tried-and-tested instrument

While the Swiss Parliament is currently debating the specifics of the legislation introducing a transparency register, its implementation is uncontested and thus expected soon. The proposed transparency register will be a central record kept by the federal government of the beneficial owners of legal entities. It is intended to show who is actually behind corporate structures with a view to preventing the kind of opaque webs of companies that are often used to hide illegal activities such as money laundering. Similar registers have already become established in many other countries.

«With the current reform to strengthen anti-money laundering measures, Switzerland is at a critical crossroads.»

One of the biggest challenges in the current legislative process is whether advisors – i.e. lawyers, notaries and fiduciaries – should be subject to the Anti-Money Laundering Act and, if so, how. These professions, which often play a key role in steering money flows and structuring companies, do not currently have to meet the same due diligence requirements as banks. They can, for example, set up complex corporate structures without verifying the source of the money used to fund them. This loophole makes the Swiss financial centre more susceptible to misuse for criminal purposes.

International dimension playing a key role

The FATF was founded by the G7 and regularly assesses whether countries are implementing effective measures to combat money laundering and terrorist financing. Through its ratings, it sets international standards on transparency and integrity in the financial sector. There are currently 40 FATF members, including all of the major economies, which underscores its global importance.

The FATF has been critical of the fact that advisors are not subject to the Anti-Money Laundering Act in Switzerland. It is therefore important for Switzerland to close this gap in its legislation before the next mutual evaluation in 2027/2028.

«A reputational damage would be catastrophic for Switzerland .»

The FATF ratings carry a great deal of weight, having a substantial influence on the international reputation of a country and its financial centre. A good FATF rating strengthens trust among investors and trading partners, whereas a poor rating can damage the country’s reputation and lead to economic disadvantages. The FATF’s «grey list» of countries with deficiencies in their measures to combat money laundering reinforces the international resonance of its ratings. This kind of reputational damage would be catastrophic for Switzerland as a leading international financial centre.

This reform is a win for everyone

The planned revision of the Anti-Money Laundering Act and the new law introducing a transparency register are vital steps towards further improving Switzerland’s apparatus for combating money laundering. Recording the beneficial owners of legal entities in the transparency register will make an important contribution to the transparency of ownership structures. At the same time, subjecting advisors to the Anti-Money Laundering Act will close a significant gap in the legislation that criminals have been able to exploit up to now.

«The reforms will contribute to Switzerland’s international competitiveness.»

Furthermore, the revision sends out a clear signal to the international community that Switzerland takes its responsibility seriously when it comes to combating money laundering. This is essential to preserving the financial centre’s credibility and preventing damage to its reputation. The reforms are thus not merely national in scope, they will also contribute to Switzerland’s international competitiveness.