Switzerland is advancing its anti-money laundering (AML) regulatory framework by consulting on new rules aimed at extending AML obligations to encompass advisory services related to the creation and structuring of legal entities. This consultation aligns with recent legislative reforms that seek to close regulatory gaps in the Swiss financial and legal sectors and strengthen efforts to combat money laundering, terrorist financing, and sanctions evasion.
Background and Legislative Reform Overview
On September 26, 2025, the Swiss Parliament adopted a significant reform package including the Federal Act on the Transparency of Legal Entities and the Identification of Beneficial Owners (TJPG), which established a centralized federal transparency register for beneficial ownership. This register covers Swiss legal entities and certain foreign entities with Swiss ties, requiring detailed disclosure of beneficial owners to enhance transparency in corporate ownership. Alongside TJPG, amendments to the Swiss Anti-Money Laundering Act (AMLA) were also enacted, expanding due diligence obligations and reporting duties to a broader set of advisors who provide services related to the formation, structuring, or sale of legal entities and other high-risk activities such as real estate transactions.
Addressing Advisory Services in AML Compliance
One of the critical elements of the reform is the extension of AML obligations to legal professionals, including lawyers, notaries, accountants, and other advisors who were previously exempt from such requirements in many professional contexts. These professionals are now subject to AML due diligence and reporting duties when they assist in creating or managing legal entities, real estate dealings, trusts, or other fiduciary arrangements that carry an elevated risk of laundering illicit funds or evading sanctions.
The reform directly addresses concerns raised by the Financial Action Task Force (FATF) concerning the misuse of corporate structures for illicit purposes. The expanded scope of AML rules intends to harmonize Switzerland’s framework with international standards, notably FATF Recommendation 24, mandating that non-financial professionals involved in certain risk-prone activities implement adequate risk-based controls and report suspicious activities.
Regulatory Consultation and Implementation Timeline
The Swiss Federal Council launched a consultation process in October 2025 on the detailed ordinances and guidelines to implement these AML extensions effectively. This consultation will continue until January 30, 2026, allowing stakeholders, including legal and financial professionals, industry groups, and the public, to provide feedback on the scope, applicability, and practical implementation of the new rules.
The consultation aims to clarify the extent of advisors’ responsibilities, the required due diligence measures, documentation standards, and reporting mechanisms. The Swiss authorities emphasize that this reform will reinforce Switzerland’s position as a transparent and robust financial center by reducing regulatory inconsistencies between financial institutions and legal professionals, which have traditionally operated under different compliance frameworks.
Implications for Legal and Financial Professionals
This reform represents a paradigm shift for legal professionals in Switzerland. Historically, lawyers and notaries have operated with broad professional privileges and minimal AML obligations unless functioning as financial intermediaries. Under the new AMLA amendments, these professionals must now actively identify beneficial owners, conduct risk assessments, and file suspicious activity reports related to their advisory functions on legal entities and real estate transactions.
While this extension improves transparency and aligns with global AML efforts, it raises challenges surrounding legal privilege, professional secrecy, and administrative burdens on legal practitioners. Legal experts have voiced concerns that the reforms might conflict with the independence of legal counsel and create operational complexities in differentiating between corporate advice and privileged client communications.
Government and Stakeholder Statements
The Swiss Federal Council affirms that these reforms are vital to safeguarding the integrity of the Swiss financial system and complying with international AML standards. By expanding regulatory oversight to advisors facilitating the creation of legal entities, Switzerland aims to prevent misuse of corporate structures for illicit ends while maintaining a competitive business environment.
Industry bodies and legal associations are engaging constructively in the consultation process, seeking to balance compliance obligations with protection of client confidentiality and efficiency in legal service delivery. The reform package’s final design and practical enforcement will reflect careful consideration of these diverse interests.