Money laundering: New reporting duties for Swiss company shareholders

On 1 July the first part of the new federal law to implement the 2012 Revised Recommendations of the Financial Action Task Force concerning the tightening of money laundering provisions entered into force. This relates to, in particular, the provisions concerning increased transparency requirements for legal entities.

Taking limited companies as an example, the following summarizes the key provisions on transparency and potential sanctions and explains when action is necessary. The amendments also affect limited liability companies and cooperatives.

No more anonymity

Previously, the acquirer of a bearer share remained basically anonymous. This is no longer possible. Whoever acquires even a single bearer share must report the acquisition as well as their first and last names and address to the company.

The acquirer must be identified to the company (by an official photo ID or an extract from the commercial register). The shareholder must report to the company any change of first or last name, company or address.

In contrast to the stock exchange law, there are no thresholds for these reporting requirements. The board of directors must keep a directory containing the date of birth and nationality of the acquirer or shareholder in addition to the first and last name or the business name and the address. The requirements of the legislator thus go beyond what the law requires in the case of registered shares.