Swiss finance seeks ownership register delay

Swiss wealth managers are calling for a postponement of the country's planned central register of company owners. This follows a significant cyber-attack on a similar register in neighbouring Liechtenstein.

The Swiss Bankers Association and the Swiss Association of Asset Managers have formally requested a delay. They argue the security of such sensitive data must be guaranteed before the register goes live. The Swiss government had planned to introduce the register in 2025.

Security fears after Liechtenstein breach

The push for a delay comes after hackers breached Liechtenstein's public register of company beneficial owners. The attack, which occurred in late March, compromised the personal data of thousands of individuals. This included names, addresses, and passport details.

Swiss financial industry groups see the incident as a stark warning. They state that the Liechtenstein hack demonstrates the real risks of centralising highly sensitive ownership information. A secure technical implementation is now their paramount concern.

The debate over transparency and risk

The planned Swiss register is part of a broader European move towards greater financial transparency. It aims to combat money laundering and terrorist financing by revealing who ultimately owns companies. Switzerland is implementing the rules to align with international standards.

However, the industry contends that security must not be sacrificed for speed. They warn that a poorly secured database could become a prime target for criminals and hostile states. The compromised data could be used for identity theft, extortion, or espionage.

Financial institutions are caught between regulatory pressure and client confidentiality duties. The associations argue that a breach would severely damage Switzerland's reputation as a secure financial centre.

Calls for a phased implementation

In their statement, the banking and asset management associations did not specify a new timeline. They suggested a more cautious, phased approach to launching the register. This would allow for thorough security testing and the implementation of robust protective measures.

The Swiss government has not yet publicly responded to the request for a delay. The final decision will weigh the imperative for transparency against the demonstrated vulnerabilities of such systems. The Liechtenstein hack has made the security question impossible to ignore.