IFLR Magazine March 2016

Reporting beneficial ownership

On July 1 2015, a new Swiss law entered into force, which implements the recommendations of the international Groupe d'action financière (GAFI) aimed at preventing money laundering and tax evasion. According to the new legislation, any person or entity acquiring (including via primary subscription) – alone or in concert with third parties – shares representing 25% or more of the share capital or voting rights in a non-listed Swiss stock corporation, must notify the corporation of the name and address of the ultimate beneficial owner of the acquiring entity (article 697j of the Code of Obligations – the CO). The deadline for notification is one month from closing the acquisition. Later changes regarding the name or address of the beneficial owner must also be disclosed. Identical reporting obligations exist regarding limited liability companies.