Swiss Regulatory Body to Streamline AML Reporting Process
Simplifying Anti-Money Laundering (AML) Reporting for Financial Intermediaries
ZURICH - The Swiss Financial Market Supervisory Authority (FINMA) is set to simplify its Anti-Money Laundering (AML) reporting process by removing the 20-day period during which it reviews and reverts reports made by financial intermediaries. This change aims to allow FINMA to prioritize such filings and treat them in a more efficient manner.
New Regulations on the Horizon
The revised Anti-Money Laundering Act (AMLA) is expected to come into force in mid-2022 or early 2023, marking a significant development in Switzerland’s financial regulatory landscape.
Key Changes Introduced by FinSA and FinIA
As of January 1, 2020, the Financial Services Act (FinSA) and the Financial Institutions Act (FinIA), along with their implementing ordinances, entered into effect. The FinSA regulates financial services provided in Switzerland or cross-border by non-Swiss providers, while the FinIA provides a new legal framework for all financial institutions.
Key Changes Include:
- Registration requirements for client advisers of non-Swiss service providers
- Categorization rules based on EU concepts of “professional clients” and “private clients”
- Market conduct rules, including appropriateness and suitability verification, inducements, and transparency requirements
Promoting Sustainable Finance
FINMA has been actively promoting sustainable finance in the Swiss financial sector. In June 2020, the authority adopted a report and guidelines on sustainability, identifying several areas that will need to be developed in the future.
Focus Areas for FINMA
The regulator is also focusing on:
- LIBOR transition: publishing a transition roadmap in December 2020 and issuing recommendations for derivatives in March 2020 and July 2021.
- Consumer protection laws: providing guidance on certain types of loans, including mandatory provisions for consumer credit contracts under the Consumer Credit Act.
Strategic Goals for FINMA
Looking ahead, FINMA’s strategic goals for the period from 2021 to 2024 include:
- Safeguarding financial institution stability
- Promoting responsible corporate governance
- Contributing to sustainable development by addressing climate-related risks
Strengthening Switzerland’s Fintech Position
The regulator is also working to strengthen Switzerland’s position as a leader in fintech innovation, engaging international bodies to establish a framework that promotes innovation while protecting customers and investors.