Swiss lawmakers have agreed to revise the money laundering law but have rejected new rules for lawyers, notaries and other consultants.
This content was published on
2 minutes
Keystone-SDA/jdp
On Wednesday, parliamentarians ironed out their remaining differences in the revision of the Anti-Money Laundering Act. The right-wing majority prevailed with more modest reforms than many left-wing deputies had hoped for. Ultimately both sides agreed that some reforms were better than none.
Under the revision, financial intermediaries will now be required to verify the identity of customers, record which services have been provided to them, and clarify their background and purpose.
Associations that collect or distribute funds abroad for charitable purposes – which could be exposed to an increased risk of terrorist financing and money laundering – will also be required to be more transparent. They will have to sign up to the commercial register, appoint a representative in Switzerland and keep a list of their members for five years.
Another key revision is the reporting of suspicious activity. Parliament agreed that banks are obliged to inform the Money Laundering Reporting Office Switzerland (MLROS) when they have any “well-founded suspicion” of criminal funds.
The final revision does not however include major changes in areas that have drawn the ire of corruption watchdogs. One is whether lawyers should be covered by amended rules – a suggestion that came in the wake of the Panama Papers, which revealed the central role of a Panamanian law firm in international money laundering. In the final revision, lawyers and fiduciaries will not be subject to due diligence requirements in the Money Laundering Act.
The threshold for cash payments in the trade of precious metals and gemstones will also not be lowered from the current CHF100,000 ($107,672). The scope of application of the Anti-Money Laundering Act will also not be extended to those who manufacture smelted products on a commercial basis.
Although the final version is more in line with international practice, Switzerland is likely to continue to face pressure to tighten money laundering rules. Swiss banks continue to get caught up in corruption scandals that some corruption experts like Mark Pieth say is proof that the laws are flawed and that Switzerland remains a money-laundering paradise”.
The draft agreed on Wednesday will now go for a final vote before implementation.
What can be done to protect biodiversity in your country?
Swiss voters are set to decide on a people’s initiative calling for better protection of ecosystems in the country. Have your say on the September 22 vote.
Swiss investigate four people linked to Russian oligarch
This content was published on
The Office of the Attorney General of Switzerland is investigating four individuals linked to Russian oligarch Suleyman Kerimov.
Swiss government scrambles to deal with egg shortage
This content was published on
From September 1, more eggs intended for consumption may be imported into Switzerland. In allowing this, the government wants to secure the supply of eggs for consumers.
This content was published on
Agricultural research sees new development opportunities for Swiss sparkling wines in the face of declining wine consumption. In a survey, half of consumers expressed a willingness to pay more for local products than for foreign ones.
Locarno spotlights filmmakers from South America and Caribbean
This content was published on
The Open Doors section of the Locarno Film Festival has named the winners for 2024. The spotlight is on the South American and Caribbean regions.
Storm paralyses trains to popular Swiss tourist resort
This content was published on
The railway line between Zweilütschinen and Grindelwald in central Switzerland is expected to remain closed until Friday following heavy rains.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Banking secrecy remains a business model for Swiss banks
This content was published on
Swiss officials have discovered CHF9 billion in embezzled Venezuelan public funds spread across hundreds of bank accounts.
Swiss oil traders and banks burned by Venezuela ties
This content was published on
Several Swiss companies and banks have found themselves in the line of fire as the United States ramps up pressure on the Venezuelan government.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.