Swiss banks to harden AML measures

According to the Swiss banking association, Switzerland’s banks will beef up anti-money laundering measures. This was announced weeks after a report by a government-appointed group found the Alpine nation was still vulnerable to financial crime.

More transparent rules are to come into force in 2016 to 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. United States’ prosecutors are also investigating alleged money laundering schemes by soccer officials.

The Swiss Bankers Association said in a statement that fighting against money laundering and terrorist financing are central issues for the Swiss financial centre. It announced 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 no one who meets these criteria, banks must instead identify the highest-ranking employee.

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.

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