NGO calls for speedy creation of beneficial ownership registry

Switzerland is no stranger to shell and letterbox companies. © Keystone / Alexandra Wey

Switzerland needs to combat money laundering quickly by setting up a register of beneficial owners of trusts and similar structures, Transparency International says.

The Swiss government tasked the finance ministry last autumn to come up with a draft bill to this effect to be ready by mid-2023 – at which point it would go out to consultation.

In a report published on Wednesday, the Transparency International NGO says the creation of such a list should happen without delay due to new international standards.

+ Switzerland’s secrecy blind spot hinders sanctions enforcement

The international Financial Action Task Force (FATF) requires transparency when it comes to beneficial ownership of opaque structures such as shell companies and trusts, the NGO said.

As a member of FATF, Switzerland needs to comply with the stricter standards. It is already lagging behind European Union (EU) countries, most of whom already operate such a register, Transparency International says.

The NGO claims that numerous corruption and money laundering cases have shown that criminals have hidden illegal assets behind convoluted structures, shell companies, trusts and other opaque entities in Switzerland.

The current legal situation favours such criminality and make it more difficult to implement sanctions, the group said.

+ Ranking highlights vulnerability of Swiss public sector

A centralised government register of beneficial ownership would be an essential element in tackling this, but only if it is comprehensive, up-to-date, and open to the public – this last parameter was not planned in the government’s initial idea for a closed register.