Financial Crime World

Here is the rewritten article in Markdown format:

Compliance Requirements for Banks in Switzerland Take Center Stage

======================================================

Switzerland’s financial market landscape has undergone a significant overhaul with the country’s new financial market legislation architecture coming into effect on January 1, 2020. The Anti-Money Laundering Act (AMLA) and the Banking Act (BA), along with several other key pieces of legislation, have been revised to enhance legal certainty, competitiveness, and exportability of Swiss financial products and services.

Key Changes

At the heart of these changes are the Financial Services Act (FinSA) and the Financial Institutions Act (FinIA), which aim to consolidate existing duties and bring investor protection in Switzerland up to date. Some key amendments include:

  • Stricter regulation of asset managers and trustees
  • Enhanced conduct rules for investment advice
  • Extended prospectus requirements

Investor Responsibility

The FinSA has also introduced a focus on investors taking responsibility for themselves, with greater transparency and due diligence requirements.

Prudential Supervision

Meanwhile, the FinIA has brought independent portfolio managers under prudential supervision, with a dedicated supervisory authority.

Ordinances

In addition to these acts, several ordinances have been introduced to flesh out the details of financial service providers’ consultation and information duties, as well as their organisational structures. The:

  • Financial Services Ordinance (FinSO)
  • Financial Institutions Ordinance (FinIO)
  • Supervisory Organisations Ordinance (SOO)

all entered into force on January 1, 2020.

Swiss Bankers Association’s Role

The Swiss Bankers Association played a key role in the legislative process, providing extensive input throughout the drafting phase and issuing statements on the final texts. Despite some areas of disagreement, the ordinances largely reflect the solutions discussed during working groups.

Transition Period

A two-year transition period applies to most of the duties under FinSA and FinIA, allowing financial institutions to adapt to the new requirements.

Expected Impact

The revised legislation is expected to have a positive impact on legal certainty, competitiveness, and exportability in Switzerland’s financial sector.