Financial Crime World

Banking Industry Compliance Updates in Switzerland: A Comprehensive Outlook

The banking industry in Switzerland is gearing up for a significant year of regulatory updates, with seven key topics set to shape the landscape of financial institutions in 2024.

Key Regulatory Updates

  • FINMA’s Lessons Learned Report: FINMA has published its eagerly awaited report on the takeover of Credit Suisse by UBS, providing valuable insights into the complex deal.
  • Sustainable Finance Revolution: The field of sustainable finance is undergoing a revolution, with numerous regulations and detailed legislation coming into effect both in the EU and Switzerland.

Anti-Money Laundering (AML) Framework

  • Supervisory authorities at national and international levels are strengthening the AML framework through amended recommendations and regulations.
  • EU Agreement on New Authority: The European Union has reached an agreement on the formation of a new authority to tackle AML issues.

Sanctions

  • Expanded Sanctions against Russia: Switzerland has implemented expanded sanctions against Russia.
  • Amendments to Sanction Lists: Amendments have been made to various sanction lists.

Digital Currency Innovation

  • FINMA’s Staking Clarification: FINMA’s staking clarification provides vital insights into the digital currency innovation landscape.
  • Digital Franc Project: The digital franc project has entered its third phase.
  • MiCA and DORA Consultations: Consultations on MiCA and DORA are signaling active implementation of the European legal framework for digital finance.
  • AI Act Developments: Developments in the AI Act have led to the first deal in AI regulation.

Tax Updates

  • OECD/G20 Minimum Tax Rate: The introduction of an OECD/G20 minimum tax rate is a significant update in the tax realm.
  • Online Obligations for VAT Registration and Reporting: Online obligations for VAT registration and reporting have been introduced.
  • Pillar Two Guidance: Further guidance has been provided on Pillar Two.

Miscellaneous

  • Improvements to Commercial Register Processes: Improvements are being made to commercial register processes.
  • Federal Law on Relieving Companies of Regulatory Costs: The Federal Law on relieving companies of regulatory costs is another key update.

Conclusion

With its deep understanding of these topics, EY is well-positioned to help financial services organizations stay ahead of the curve in an increasingly digital, complex, and interconnected world. A special thanks goes out to the EY Law team and Tax team for their valuable contributions to this report.