BEFORE YOU GO...
Check how Shufti Pro can verify your customers within secondsRequest Demo
Switzerland has introduced new anti-money laundering regulations to bolster financial institutes’ security and controls to combat financial crimes.
Switzerland proposed new strict rules for registered business beneficial owners and companies. Submitting Ultimate Beneficial Owner (UBO) data provides financial institutes and regulatory authorities with a legal ownership framework. It would also enhance transparency in the corporate structure. The law enforcement authorities would promptly confirm the company’s actual owner. The legal framework reduces business-registering companies’ burden and accelerates onboarding. These new measures will also assist financial organisations in adequately verifying their business identities and complying with Know Your Customer (KYC) obligations.
Switzerland’s financial sector is the world’s largest and most versatile banking industry, employing more than 200,000 people. Its financial sector makes up 9.7% of the country’s Gross Domestic Product (GDP), which is why it is a vital pillar of its economy. This also creates pressure on the Swiss government to manage world-cross-border assets adequately. Switzerland regularly arranged meetings between financial institutes and regulatory authorities, including the partner Asian countries. To maintain its essential position in the global financial ecosystem, Switzerland must prevent abuse of its system and enhance investors’ loyalty to its AML solutions.
Previously, Switzerland endorsed various strict regulations to raise the bar against money laundering, as it damages reputations and is also a source of terrorism and drug trafficking. The Swiss Finance Minister Karin Keller-Sutter stated, “The Switzerland anti-money laundering framework is considered good overall by international bodies, but there are gaps.” Therefore, Switzerland proposed these new measures to overcome these loopholes. These strict AML obligations are designed after analysing other countries’ legal frameworks without upsetting customers and investors.
Moreover, the Swiss authorities are also considering comprehensive regulations for some legal professionals, such as lawyers, notaries, and accountants. They must conclude risk assessments of the customer and the beneficial owner by intent and the type of the transaction in cases where there is a higher risk of money laundering. Switzerland’s new AML checks are verified, and many countries have implemented them, which gives them effective results and protects them from various financial crimes.