A register of beneficial owners of legal entities should provide additional clarity, according to the Swiss government.
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In addition, there will be due diligence requirements for particularly risky activities in the legal professions, as can be seen from the consultation.
An efficient system to combat financial crime is essential for the good reputation and sustainable success of Switzerland as a financial and business location, Finance Minister Karin Keller-Sutter told the media in Bern on Wednesday.
Legal entities in particular are abused worldwide by criminals and organised crime to conceal assets and thereby enable money laundering, tax evasion and the avoidance of sanctions.
With a strengthened mechanism for combating money laundering, the law enforcement authorities in particular should now be able to determine more quickly and reliably who is actually behind a legal structure.
According to Keller-Sutter, one of the most important elements for more transparency is a new federal register where companies and other legal entities in Switzerland must register with information on their beneficial owners.
This would make it possible, for example, to assign assets to a person in the event of criminal proceedings. It would also make it easier to implement international sanctions that Switzerland has adopted.
The register is not public and is managed by the justice ministry in order to use the infrastructure and know-how of the commercial registry authorities. An office affiliated to the finance ministry is to carry out checks and, if necessary, impose sanctions.
Another measure is aimed in particular at advisory activities in the legal field, which harbour an increased risk of money laundering. The due diligence requirements under the money-laundering law will now also apply to such legal advice. The structuring of companies or real estate transactions are considered to be particularly risky.
The finance ministry emphasises that the status of the legal profession and the professional secrecy of lawyers and notaries will be respected.
Further measures will be taken to combat the circumvention or violation of sanctions under the embargo law. At the same time, the threshold for cash payments in precious metals trading will be lowered from CHF100,000 ($115,000) to CHF15,000.
Higher cash payments will continue to be possible, but will be subject to certain due diligence requirements. In real estate trading, on the other hand, due diligence obligations under the money-laundering law now apply to all cash payments, regardless of the amount. ■