Banking Industry Compliance Updates: What You Need to Know in Switzerland

In today’s rapidly evolving financial landscape, compliance with regulatory updates is crucial for banks and financial institutions operating in Switzerland. In this article, we provide an overview of the latest developments in banking and capital markets, sustainable finance, anti-money laundering, sanctions, tax, digital innovation, and miscellaneous topics.

National Developments

The acquisition of Credit Suisse by UBS has significant implications for the Swiss banking sector. Additionally, international agreements on CRR, CRD, MiFIR, and MiFID II continue to shape the industry.

Sustainable Finance

New regulations and guidelines aim to combat greenwashing, reflecting growing concerns about environmental impact.

Anti-Money Laundering Efforts

Attention is focused on the upcoming Act on Transparency of Legal Entities and revisions to the Swiss banks’ code of conduct regarding due diligence.

Sanctions Landscape

Switzerland has aligned with the EU’s 11th sanctions package against Russia, as well as updated lists for Syria, Belarus, Moldova, Ukraine, and Iran.

Tax Regulations

Tax regulations have become more flexible for stock corporations. Revised qualified intermediary agreements broaden responsibilities for withholding and reporting taxes on foreign investments.

Data Protection Act

The Swiss Data Protection Act and related ordinances came into effect on September 1, 2023.

Digital Innovation

The MiCA and TFR frameworks provide a legal foundation for crypto-assets in Europe. The AI Act draft serves as a negotiating position with the European Council.

By leveraging EY’s expertise, financial services organizations can navigate these complex changes and maintain excellence in an increasingly digital and interconnected world.