The case

What possible regulatory scenarios are most likely to be expected for the Swiss art market in the next 5 – 10 years?

The commentary

Over the coming 5 – 10 years, Switzerland’s art market is likely to experience several pivotal changes due to increasing regulations aimed at transparency and anti-money laundering (AML) efforts. These adjustments are expected to be in line with global trends and pressures, especially when following the example set by the EU and its transparency measures.

By 2026, Switzerland may have fully adopted a new federal register,  which will be in compliance with international anti-money laundering (AML) standards, in order to track beneficial owners of legal entities. Although the register will not be publicly accessible, it will serve as a crucial tool for Swiss authorities to monitor ownership structures and money flows within the art market. Art dealers, galleries as well as auction houses will be required to provide more detailed information about the provenance of artworks, their clients and financial transactions.

Art dealers and galleries will be under increasing pressure to perform a thorough due diligence on clients, particularly for high-value transactions (CHF 100,000 and over). Greater transparency entails less anonymity for collectors and buyers, which, in turn, most probably will affect their willingness to invest in the Swiss art market. Enhanced regulation may deter illicit financial activities (e.g. money laundering) and will increase administrative and compliance costs for art market players.

Lawyers will not be obliged to disclose information that is subject to legal professional privilege unless it relates to financial market transactions. Despite all of this, it is advisable to document information about the beneficial owners.