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Banking Compliance Regulations in Switzerland: A High-Level Overview

The governance and supervision of banks in Switzerland are governed by a complex web of legislation, regulatory bodies, licensing requirements, prudential and resolution standards, and recent trends. This article provides an overview of these key aspects.

Regulatory Framework

In Switzerland, the banking sector is primarily regulated by:

  • Federal Act on Banks and Savings Banks (BankA)
  • Ordinance to the BankA

The Swiss Financial Market Supervisory Authority (FINMA), which is responsible for ensuring the stability and integrity of the financial system, plays a crucial role in overseeing banks.

Licensing Requirements

To operate in Switzerland, banks must obtain a license from FINMA. This involves meeting prudential requirements, such as:

  • Minimum capital and liquidity standards
  • Submitting to regular inspections and reporting obligations

Role of the Swiss National Bank (SNB)

The SNB also has a significant role in regulating the banking sector, particularly with regard to:

  • Monetary policy
  • Foreign exchange management

The SNB is responsible for ensuring the stability of the Swiss financial system and maintaining low inflation.

In recent years, there have been increasing trends towards stricter regulations and increased transparency in the banking sector. This includes measures aimed at:

  • Combating money laundering and terrorist financing
  • Improving risk management and governance practices among banks

Importance for Lawyers Advising on Banking Matters

For lawyers advising on banking matters in Switzerland, it is essential to stay up-to-date with these evolving regulations and trends. A comprehensive understanding of the complex regulatory framework and the various bodies responsible for overseeing the sector will enable them to provide effective advice to clients and ensure compliance with relevant laws and regulations.

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