SWITZERLAND Trends and Developments Contributed by: Jean-Marc Carnicé, Canonica Valticos Carnicé & Associés
Switzerland’s intent to enhance corporate trans - parency, curb the misuse of legal structures for illicit purposes, and move closer to alignment with international standards – particularly those established by FATF. The proposed framework introduces a series of targeted measures and oversight mechanisms that, if enacted, would strengthen the country’s ability to detect and prevent money laundering and other financial crimes. The key provisions of the proposed legislation will be addressed in the following paragraphs, highlighting the most significant measures through which Switzerland aims to reinforce its AML framework. Creation of a federal beneficial ownership register At the core of the proposed reform is the creation of a centralised register of beneficial ownership. Legal entities such as corporations, trusts, and partnerships will be required to disclose their ultimate beneficial owners. The register will be managed by the Federal Department of Justice and Police, leveraging the expertise and admin - istrative structures of the existing commercial register authorities. Although not publicly acces - sible, this register will provide law enforcement and supervisory bodies with a clearer view of who ultimately controls companies and assets, thus limiting the misuse of opaque structures for money laundering or asset concealment. This measure is expected to significantly improve the traceability of funds and facilitate the iden - tification of those responsible for managing or benefitting from potentially illicit financial flows. In doing so, it will enhance accountability and reduce opportunities for financial obfuscation, particularly in cases involving complex or cross- border ownership arrangements.
Extension of AML due diligence obligations to “high-risk” advisory services The dispatch also proposes to broaden the scope of AML due diligence requirements to cover certain advisory services that are deemed to present a high risk of money laundering. These include, in particular, legal and consulting activi - ties related to the structuring of companies as well as real estate transactions. Specific provisions are foreseen to ensure that the professional secrecy of lawyers and notaries is fully preserved. This protection is of funda - mental importance. Legal professional privilege is not merely a procedural safeguard – it is a foundational principle of the rule of law, allowing individuals to seek legal advice in full confiden - tiality and with the assurance of non-disclosure. Under the proposed framework, lawyers will remain exempt from AML due diligence obliga - tions when acting in the course of legal repre - sentation – that is, when performing functions that fall within the core, traditional activities of the legal profession. Similarly, with regard to the duty to report, pro - fessional secrecy prevents the transmission to the MROS of any information obtained in the context of a lawyer’s typical activities, including legal advice. This aspect is essential, insofar as protecting legal professional privilege ensures the inde - pendence of the legal profession and preserves the trust that is fundamental to its role in a demo- cratic society.
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