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Compliance Risks in Fintech in Switzerland: A Primer

Switzerland has emerged as a hub for fintech innovation, with its unique blend of regulatory environment and financial infrastructure making it an attractive destination for startups and established players alike. However, navigating the complex web of regulations and ensuring compliance is no easy task.

The Swiss Fintech License: What You Need to Know

To operate in Switzerland, fintech companies must obtain a license from the Swiss Financial Market Supervisory Authority (FINMA). The application process involves submitting a detailed business plan, financial projections, and other supporting documentation. The license requires companies to maintain minimum capital requirements, have an independent risk management department, and ensure that at least one-third of their board members are independent of generated income activities.

Key Compliance Requirements

  • Minimum Capital Requirement: CHF 300,000
  • Independent Risk Management Department: Ensure that your company has a dedicated risk management team.
  • Board Member Independence: At least one-third of the board members must be independent of generated income activities.
  • AML/KYC Procedures: Implement effective anti-money laundering (AML) and know-your-customer (KYC) procedures.

The Licensing Process: Timeline and Costs

The licensing process typically takes several months to complete, with costs ranging from CHF 150,000 to CHF 200,000. The process involves:

  • Submission of Application: Submit your application to FINMA.
  • Review by FINMA: FINMA reviews the application and supporting documentation.
  • Implementation of Operational Requirements: Implement the operational requirements outlined in the license.

Expert Insights: JayBee’s Fintech Team

JayBee AG, a leading consulting firm in Switzerland, has extensive experience in fintech licensing and compliance. Their team of experts, including Jürg Baltensperger, Loïc Staub, and Andrej Simonov, have supported six companies in their licensing process to date.

Conclusion

Navigating the complex regulatory landscape of fintech in Switzerland requires expertise and careful planning. JayBee AG’s comprehensive guide provides a valuable resource for fintech startups and established players alike, highlighting the key compliance requirements and the licensing process. With its strong network in Switzerland and deep understanding of the fintech ecosystem, JayBee AG is well-positioned to support companies in their quest for success in this exciting and rapidly evolving market.