The move follows the Swiss Financial Market Supervisory Authority (FINMA) stating that countries like Germany, France, Belgium and Argentina have followed the US in launching high-profile criminal investigations, while Israel and India "are threatening to do so" in suspected black money cases.
Besides, a government-appointed panel recently admitted that Switzerland was still being seen as an attractive place for money laundering and urgent steps were required to correct this perception.
Under pressure, Swiss authorities have already begun sharing information with India and other countries in suspected cases of tax evasion.
Joining the Swiss government's efforts, the Swiss banks today said they will tighten their due diligence norms, which would come into effect from the beginning of 2016.
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In a statement, the Swiss Bankers Association (SBA) said it regularly amends its agreement governing the banks' code of conduct with regard to the exercise of due diligence (CDB).
Since 1977, CBD has governed the duties of the banks in Switzerland for the treatment of assets entrusted to them and the requirements for client identification.
"In order to conform with changing circumstances and international standards, for example the recommendations of the Financial Action Task Force (FATF), the SBA regularly amends the CDB. The next amendment will come into effect at the beginning of 2016," the SBA said.
"The most important change in the CDB 2016 is, that the beneficial owner (controlling owner) must now be identified for operative legal entities and private companies.
"If no such controlling owner exists, the highest-ranking employee must be identified instead. No controlling owner must be identified for exchange-listed companies, public authorities, financial intermediaries, certain associations with non-material interests, non-profit organisations, condominium owners or common owner collectives," it added.