What are the transparency obligations for trusts in Switzerland, and how does the anti-money laundering system work?
In Switzerland, trust legislation was revised in 2020 to strengthen transparency and combat money laundering. Here are some of the transparency obligations for trusts in Switzerland:
- Registration: Trusts must be registered with a central register in Switzerland. Information about the trust, its beneficiaries, and its trustees is recorded in this register.
- Identification of beneficial owners: Trustees must identify the beneficial owners of the trust and declare them to the central register. Beneficial owners are the persons who control the trust or who benefit from its assets.
- Declaration of all beneficiaries: Trustees must declare all beneficiaries of the trust, including those whose identity is unknown.
- Declaration of the source of funds: Trustees must declare the source of funds used to create the trust.
The anti-money laundering system in Switzerland is regulated by the Swiss Anti-Money Laundering Act and the Financing of Terrorism Act (LBA). This law imposes obligations on financial entities, including trustees, to combat money laundering and the financing of terrorism. Trustees are required to establish reasonable due diligence measures to identify the risks of money laundering and terrorism financing and to take measures to prevent them.
Trustees are also required to report suspicious transactions to the competent authorities. Swiss authorities are required to cooperate with foreign authorities in investigations of financial crimes and money laundering.
In summary, transparency obligations for trusts in Switzerland have been strengthened to combat money laundering and tax fraud. Trustees must comply with transparency and anti-money laundering rules, as well as tax and other applicable regulations.