In the war between financial centres, and your economy slows, ditch the AML/CTF rules.

Switzerland currently ranks second after the United States on a list of the world's top financial secrecy enablers compiled by the Tax Justice Network.

However, Reuters has reported that Swiss lawmakers are

• Seeking to water down government proposals to help prevent financial crime, saying.
• Pushing back against the stricter rules in the government's legislation, designed to prevent rogue lawyers, trustees, or other advisers from facilitating money laundering, describing the curbs as unnecessary and burdensome.

The reported reason for the push back is:

• The country needs to stay competitive in global cross-border wealth management where rival centres - including Singapore and the UAE - are gaining ground.

it is reported that Barbara Steinemann, a federal lawmaker for the right‑wing Swiss People's Party, told Reuters that:-

• For years, whenever there was foreign pressure on financial transparency, Switzerland dutifully implemented rules, DRIVING UP BUREAUCRACY AND ERODING COMPETITIVENESS, even as other financial centres held back.
• "This is about a war between financial centres and economic interests,"
• "The Americans and other European countries would like to take over our business."

Swiss economy under pressure

• Switzerland is currently the world's largest wealth management hub but could lose that crown as early as this year, according to a forecast from Boston Consulting Group.
• The focus on Swiss competitiveness has intensified since the country was hit with a 39% U.S. import tariff by President Donald Trump, making lawmakers keen to find ways to strengthen the country's economy.
• Every major financial centre in 2024 grew more rapidly in percentage terms of cross-border wealth than Switzerland, according to the Boston Consulting Group.
• Singapore topped the list with 11.9% growth in cross-border wealth.
• Hong Kong is set to become the world's leading booking centre for cross-border wealth in 2025, based on BCG's forecast.

THE TRANSPARENCY DRIVE MUST NOT LEAD TO OVER-REGULATION

Switzerland was under pressure for years to disclose more information about bank account holders, which ultimately led to the end of Swiss bank secrecy, exposing the country to increased competition from other wealth management centres.

However, now in 2025, the lawmakers argue that Switzerland needs to slow down its anti-money laundering efforts on competitive grounds, an argument also used in other areas, including the debate over proposed new capital rules for UBS, Switzerland's largest bank.

• Switzerland in 2024 implemented the OECD's minimum 15% tax rate for large multinationals and final Basel III banking standards this year, ahead of other major financial centres.

The Liberals, the Swiss People's Party and the centrist party The Centre, which together hold a majority in parliament, REJECTED an anti-money laundering bill back in 2020.

Simone Gianini of the centre-right Liberals said

• The transparency drive must not lead to over-regulation,

The Centre party lawmaker Beat Rieder told parliament in June that Switzerland already has a more sophisticated system to combat money laundering than other financial centres.

• "When we pass laws, they are implemented down to the last detail."

EXCLUDED AND EXEMPTED

In June, the Swiss parliament EXCLUDED

• CHARITIES AND OTHER NON-PROFIT GROUPS from a planned transparency register to show beneficial owners,

• A step the government has said would jeopardise Swiss commitments to combat money laundering and terrorism financing.

• EXEMPTED TRUST ARRANGEMENTS FROM THE REGISTER,

• Schemes, which Finance Minister Karin Keller-Sutter has said are particularly prone to crime as they can be used to conceal a client's identity.

Parliament's upper house has

• Diluted new due diligence obligations for advisers,
• Exempting some lawyers from implementing these safeguards.

The exemptions from the transparency register are final, as both houses of parliament have agreed on them.

The lower house is due to debate the government's proposed due diligence rules for advisers this week to determine their scope.

WARNING

Finance Minister Karin Keller-Sutter has said

• The amendments have significantly reduced the scope of those lawyers covered by the obligations.
• That an effective system for combating financial crime was essential for the reputation and success of an internationally significant financial centre and business location.

Anton Broennimann, who heads the country's financial crime unit, said

• Switzerland must ensure it does not become attractive to criminals due to competitive considerations.
• "We would welcome stricter rules for high-risk activities in the financial advisory sector even if some other countries currently have no obligations in this area,"

SECRECY

Switzerland currently ranks second on the Tax Justice Network's Financial Secrecy Index (FSI), just behind the United States, as of the latest update in June 2025

What the Financial Secrecy Index Measures

The FSI ranks jurisdictions based on two key components:

1. Secrecy Score – How much legal and regulatory space a country provides for financial secrecy.
2. Global Scale Weight (GSW) – The volume of financial services a country provides to non-residents, indicating its global impact.

These are combined into the FSI Value, which determines a country's rank in enabling global financial secrecy.

Why Switzerland Ranks So High

Despite reforms over the years — including ending traditional bank secrecy and adopting international standards like the OECD's Common Reporting Standard — Switzerland still:

• Offers loopholes in transparency laws.
• Maintains limited disclosure requirements for trusts and charities.
• Faces political resistance to stricter anti-money laundering laws, with lawmakers citing competitiveness concerns

Top Financial Secrecy Enablers (2025)

According to the FSI:

1. United States
2. Switzerland
3. Singapore
4. Hong Kong
5. Luxembourg

References

• Swiss Lawmakers Push Back on Anti-Money Laundering Law Over ...https://money.usnews.com/investing/news/articles/2025-09-11/swiss-lawmakers-push-back-on-anti-money-laundering-law-over-competitiveness-concerns
• Financial Secrecy Index – Tax Justice Network https://fsi.taxjustice.net/#scoring_id=268
• https://finance.yahoo.com/news/swiss-lawmakers-push-back-anti-060610340.html