For an open register of beneficial owners

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Basel, 29.11.2023

Federal Act on the Transparency of Legal Entities and the Identification of Beneficial Owners (Legal Entities Transparency Act; TJPG) – consultation response

Dear Federal Councillor

Dear Sir or Madam

We are pleased to take the opportunity to comment as part of the consultation on the Federal Act on the Transparency of Legal Entities and the Identification of Beneficial Owners (Legal Entities Transparency Act; TJPG).

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This statement is accordingly limited to our core competences and interests. We do not comment on the other aspects of the consultation on behalf of the association; this should be interpreted neither as approval nor as rejection. From this perspective, we would like to note the following: 

We welcome in principle the introduction of a central register of beneficial owners, as it improves prevention and prosecution in the area of financial crime. However, we call for public access to the register and for it to be made available as open government data (OGD): in addition to financial intermediaries, NGOs and journalists* can also help to uncover cases of corruption and money laundering. This would allow broader scrutiny of the information recorded and thus contribute to data quality. Not least, a public register would improve international cooperation in prevention and prosecution and contribute to the positive reputation of the Swiss financial centre. For companies, and SMEs in particular, a public register would make checking business partners considerably easier and create a level playing field, as this information would no longer have to be obtained from third parties. Article 28 should be amended accordingly.

We thank you for the attention you give to our comments and ask you to take our concerns into account. We will be happy to answer any questions.

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* The explanatory report points out that access to the register may be granted in individual cases on the basis of an overriding public interest under the Freedom of Information Act (FoIA). However, this is severely restricted in the interest of third parties. The procedure is lengthy compared with direct access. Moreover, it remains unclear how such FoIA requests would be assessed if the TJPG refuses access on the grounds of an overriding public interest. The reference to the FoIA is therefore not convincing.