Financial Crime World

Regulatory Technology in Banking in Switzerland Set to Dominate 2022

The Swiss financial sector is bracing itself for a busy year as various laws, regulations, and guidelines come into force or undergo significant changes. Financial institutions and wealth managers will need to adapt quickly to comply with these new requirements.

Key Areas of Focus

  • Financial Stability: Regulatory concerns are centered around financial stability, sustainability, and customer protection.
  • Sustainability: The topic of sustainable finance remains highly relevant in Switzerland, particularly with the entry into force of legal provisions aimed at increasing individual and environmental protection.

Financial Crime Sector

  • Anti-Money Laundering (AML) Act: A new AML Act is being implemented, requiring financial institutions to adapt to new standards.
  • European Union Guidelines: The EU has introduced transparency guidelines and regulations regarding climate risks and greenwashing.

Sanctions

  • Russia and Belarus Sanctions: Switzerland and the EU have introduced sanctions against Russia and Belarus in response to the war in Ukraine, making sanctions a pressing issue for financial institutions.

Tax Realm

  • International Tax Agreements: Switzerland has aligned its legal framework with international developments through the Federal Act on the Implementation of International Tax Agreements.
  • Future Tax Developments: Revisions to VAT and withholding tax Acts are expected, as well as the implementation of BEPS 2.0 Pillar Two.

Digital Perspective

  • Crypto Assets Regulation: The European Union has agreed upon landmark legislation to regulate crypto assets and certain Distributed Ledger Technology (DLT) service providers.
  • Expected Completion: The legislative process is expected to be completed later this year.

Covid-19 Pandemic

  • Lifting Restrictions: Switzerland has lifted remaining Covid-19 restrictions, handing responsibility for containing the virus over to cantonal authorities.
  • Long-term Relevance: However, the pandemic will continue to have long-term relevance, making it crucial to monitor its development and regulation.

Additional Regulatory Updates

  • Credential Stuffing: Developments in credential stuffing regulations under the “Miscellanea” section.
  • Crowdfunding Regulations: Developments in crowdfunding regulations under the “Miscellanea” section.

EY’s Expertise

With its deep understanding of these complex regulatory topics, EY is well-positioned to help financial services organizations navigate an increasingly digital, complex, and interconnected world. For more information on regulatory highlights in the Swiss financial sector, read our summer 2022 edition.