On Wednesday, the Swiss government said it plans to create a central registry to track who owns legal entities to fight money laundering via shell companies. The cabinet has asked the finance ministry to draft specific proposals by mid-2023 that could enhance transparency by making it easier to identify corporate owners.

The move aims to strengthen the prevention and prosecution of financial crime and, thus, the integrity and reputation of (Switzerland as a) financial centre and business location.

Switzerland’s banks make it the world’s biggest manager of offshore wealth. It has sought to fight its old image as a place for criminals to stash ill-gotten gains. It routinely exchanges bank account information with over 100 nations.
However, it has faced international pressure to shed more light onto the shadowy world of corporate ownership, where many firms cloak the identity of the real beneficiaries.

The objective was to create a central register to identify owners and also updating information about actual beneficiaries. The register is supposed to be accessible to relevant authorities, not the public. The goal is to find a solution that is as effective and efficient as possible.

It asked the finance ministry to consider steps to tighten anti-money-laundering rules, for example, by widening their scope to include the legal professions.

In the past, Parliament has rejected the idea of subjecting financial advisers and lawyers to the same rules that banks face while reporting suspicious transactions.