SWITZERLAND Trends and Developments Contributed by: Jean-Marc Carnicé, Canonica Valticos Carnicé & Associés
Reinforcement of AML measures in targeted sectors: precious metals and real estate The legislative proposal also introduces sector- specific provisions tailored to areas considered particularly exposed to money laundering risks. In the precious metals trading sector, enhanced due diligence obligations will apply to all cash payments exceeding CHF15,000. Similarly, in the real estate sector, due diligence require - ments will apply to all cash transactions, regard - less of the amount involved. By imposing stricter controls on these sectors, the proposed Law on Transparency of Legal Enti - ties aims to strengthen preventative safeguards and ensure that Switzerland’s AML regime is both risk-sensitive and comprehensive. Effect of the measures contained in the legislative proposal: enhancement of transparency, improvement of traceability and stricter due diligence requirements The cumulative effect of the measures set out in the Swiss Federal Council’s 2024 dispatch will be to significantly enhance transparency and improve the traceability of financial assets within Switzerland’s economy. Among these, the introduction of a beneficial ownership register stands out as a structural reform poised to pro - vide supervisory and law enforcement authori - ties with deeper insight into ownership struc - tures that may otherwise obscure illicit activity. This is especially relevant in an increasingly interconnected global financial system, where transparency is essential to asset recovery and international co-operation. These legislative initiatives also bring Switzerland into closer alignment with the recommendations and evolving expectations of FATF, reaffirming
the country’s commitment to international stand - ards in the fight against financial crime. In sum, the 2024 dispatch reflects not only a determination to reinforce domestic safeguards, but also a recognition of Switzerland’s responsi - bilities within the global financial architecture. If adopted, the proposed law would mark a pivotal development in the country’s AML framework – strengthening oversight, enhancing investigative capabilities, and reinforcing Switzerland’s posi - tion as a secure and transparent financial centre. It is, however, essential that the guarantees of legal professional privilege for lawyers are fully preserved, as these protections are fundamental to ensuring the integrity of the legal system and the trust of clients in seeking confidential legal advice without fear of disclosure. A system converging towards a stricter framework The combined effect of recent judicial decisions and proposed legislative reforms is steadily shaping a stricter and more rigorous AML frame - work in Switzerland. Court rulings that have clarified the contours of the duty to report – defining who bears the obli - gation, what triggers it, and when it ends – have brought more precision and foresight to the obli - gations placed on financial intermediaries. While financial intermediaries now face clearer obligations in identifying and reporting suspi - cious activity, this clarity comes at the cost of an expanding scope of responsibilities and obliga - tions placed upon them, raising concerns about the growing burden placed on private actors. The current trend towards broadening the reporting obligation to the MROS has also begun
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