Swiss banks to toughen up anti-money laundering measures

Monday, 6 July 2015 00:00 - - {{hitsCtrl.values.hits}}

ZURICH (Reuters): Switzerland’s banks will beef up anti-money laundering measures; the Swiss banking association said last week, weeks after a report by a government-appointed group found the Alpine nation was still vulnerable to financial crime.

More transparent rules due to come into force next year will make it harder for criminals to hide their money in companies or schemes with obscure ownership structures.

The measures were announced as Switzerland investigates alleged corruption at Zurich-based FIFA, world soccer’s governing body, in connection with World Cup bids. US prosecutors are also investigating alleged money laundering schemes by soccer officials.

“The fight against money laundering and terrorist financing, are central issues for the Swiss financial centre,” the Swiss Bankers Association said in a statement.

It said that from 2016, bank would face a new requirement to identify the controlling owner of legal entities and private companies. This would mean any individual with a stake of more than 25%, or exercising effective control.

If there is no one who meets these criteria, banks must instead identify the highest-ranking employee, the SBA said, adding that the new due diligence requirement is line with international standards.

The announcement follows a report this month from a Swiss interdepartmental group on combating money laundering and terrorism financing, in which it recommended measures to improve rules tackling financial crime.