Home Business Compliance and Regulatory Technology Swiss Lawmakers Resist Tougher...

Swiss Lawmakers Resist Tougher AML Rules Amid Rising Global Competition

Compliance and Regulatory Technology

Business Honor - Swiss Lawmakers Resist AML Rules

Business Honor
11 September, 2025

Swiss lawmakers warn tighter AML rules could harm competitiveness in global wealth management.

Swiss legislators are resisting plans to amend the nation's anti-money laundering (AML) legislation, arguing that Switzerland's competitive position in cross-border wealth management would be threatened. Switzerland is currently the world's largest wealth management center, but it is facing increased competition from other financial hubs such as Singapore and the UAE, which are making strides in cross-border wealth management.

The Swiss government's proposed AML bill aims to harmonize with international standards set by the Financial Action Task Force (FATF) to combat financial crimes, including money laundering and terrorist financing. But lawmakers say these tighter rules will hurt the nation's financial sector, particularly as other money centers are slow to bring about similar changes. Some politicians fear that Switzerland's efforts to apply transparency and tighten the rules will increase bureaucracy and drive business away, ultimately leading to lower competitiveness.

Among the most contentious of these proposals is a draft transparency register mandating disclosure of beneficial ownership, including information regarding shell companies. According to critics, such mandates could drive away wealthy clients from settling in Switzerland as a financial center, particularly as competitors like Singapore and Hong Kong keep broadening their wealth management business with lower regulatory hurdles.

Although most legislators recognize the value of combating financial crime, they caution that overregulation would damage Switzerland's reputation as a whole. Notwithstanding this, financial crime specialists underline the necessity for effective systems to detect and deter criminal activity, and they believe that compliance technologies, including AML software and KYC solutions, are essential for banks to satisfy regulators.