In Switzerland, consultations have begun on a bill to tighten anti-money laundering legislation in order to strengthen the “integrity and competitiveness” of the country as an investment center. The main features of the proposed bill are:
- The introduction of a federal registry, in which companies and other legal entities will be required to enter the names of their beneficial owners. The private registry will be maintained by the federal police and regularly reviewed by the federal finance department.
- Anti-money laundering rules will apply to advisory activities, especially legal advice.
- Measures to prevent “violation or circumvention” of sanctions under embargo legislation.
- The cash payment threshold for precious metals trading will be lowered from 100,000 Swiss francs ($114,000) to 15,000 francs.
Many Swiss lawmakers have been reluctant in the past to impose tougher restrictions on lawyers’ privileges because they are lawyers themselves, the US official said.
A meaningful register of beneficial owners will force lawyers to be more open about suspicious activity, the official said.
The campaign group Transparency International said the bill was welcome but needed to be improved. Access to the registry should not be restricted, but should be open to journalists and NGOs. Companies must also have access to verify business partners, the report said.
The group added that the law should be expanded to include activities such as art or luxury transactions.