Swiss Lawmakers Push Back on Tougher Anti-Money Laundering Rules Amid Rising Global Competition

Swiss lawmakers are seeking to dilute government proposals aimed at preventing financial crime, arguing that stricter rules could erode the country’s competitiveness in global cross-border wealth management. Switzerland, long the world’s largest wealth hub, faces mounting competition from rival centres such as Singapore and the UAE, while a Boston Consulting Group forecast warns Hong Kong could overtake Switzerland as the leading booking centre for cross-border wealth as early as 2025.

The government’s anti-money laundering legislation was designed to meet Financial Action Task Force (FATF) requirements, including curbs on shell companies and greater due diligence for advisers. But parliament has watered down key measures, exempting charities, trust arrangements, and some lawyers from transparency registers and due diligence rules. Finance Minister Karin Keller-Sutter warned that the amendments significantly reduced the scope of safeguards, while critics said the changes risk undermining Switzerland’s commitments to fight financial crime.

Supporters of the rollback, including lawmakers from the right-wing Swiss People’s Party, centre-right Liberals, and The Centre, argue the measures are excessive and burdensome, pointing out that Switzerland already enforces more detailed compliance rules than other financial hubs. However, Anton Broennimann, head of the country’s financial crime unit, cautioned that Switzerland must not allow competitive pressures to make it attractive to criminals, stressing that an effective system was vital to safeguard the country’s reputation as an international financial centre.

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