Financial Crime World

Switzerland Braces for New Financial Compliance Regulations: A Year of Change for Banking and Wealth Management

Switzerland’s financial sector is preparing for a significant year of regulatory changes and adaptations. In this article, we provide an extensive overview of the legislation slated to impact the Swiss financial landscape. The topics cover:

  1. Banking and capital markets
  2. Sustainable finance
  3. Anti-money laundering
  4. Sanctions
  5. Tax
  6. Digital
  7. Covid-19
  8. Miscellanea

Sustainable Finance

The sustainable finance agenda dominates the regulatory conversation. New legislation comes into effect to bolster individual and environmental protection:

  • Switzerland and the EU introduce transparency guidelines to address climate risks and combat greenwashing.

Anti-Money Laundering

Switzerland’s financial crime sector undergoes transformation via the entry into force of the new Anti-Money Laundering Act (AML Act). This necessitates the adaptation of AMLO-FINMA to comply with the latest standards.

  • The European Union establishes a central authority for anti-money laundering, promising a harmonized regulatory landscape among EU Member States.

Sanctions

Switzerland, alongside the EU, has levied sanctions on Russia and Belarus this year, aligning with international actions. The Federal Act on the Implementation of International Tax Agreements and its associated ordinance mark the latest development in the Swiss tax landscape:

  • Switzerland aligns the existing framework with international tax law.
  • Upcoming changes include the revision of the VAT and withholding tax Acts and the impending implementation of the BEPS 2.0 Pillar Two.

Digital

The digital frontier witnesses landmark legislation from European Union policymakers:

  • Regulation of crypto assets and specific DLT service providers.

Covid-19

Switzerland plans to remove the last strands of Covid-19 restrictions as of April 1, 2022. While maintaining a watchful eye on the ongoing pandemic and its regulatory implications.

Miscellanea

Under the “Miscellanea” section, the Regulatory Update delves into emerging topics such as:

  • Credential stuffing
  • Modifications to crowdfunding regulations

As regulatory complexity, digital transformation, and international interconnectedness continue to reshape the financial services industry, EY serves as a trusted advisor. Empowering organizations to maintain compliance and excel in a rapidly evolving landscape.

Read the latest Regulatory Highlights in the Financial Services Sector – Summer 2022 edition to stay informed.