Banking Industry Compliance Updates in Switzerland Receive International Recognition
The Swiss banking industry has received international recognition for its compliance standards, ranking among the top financial centers globally according to a new index. The Global Financial Regulation, Transparency, and Compliance Index (GFRTCI) assesses the quality of implementation of regulations across 31 countries, including OECD and BCBS members.
Research Methodology
Swiss banking experts led by University of Miami Professor Alfred Mettler embarked on a research project to investigate publicly available data on regulation, transparency, and compliance standards. The team’s initial findings were published in 2020, with an updated version released this year. The index takes into account not only the presence of regulations but also their credible enforcement.
Index Findings
Switzerland’s commitment to orderly implementation through provisions governing product authenticity and clarity has earned it a top spot alongside Finland, Sweden, Denmark, Estonia, the UK, and Canada. The European Union has made significant progress in implementing Basel III framework, with seven EU members ranking among the top ten countries.
Implications for Policymakers
The GFRTCI can serve as guidance for policymakers, highlighting strengths and weaknesses in specific areas. Markus Bürgi, a member of the Swiss Financial Institute’s Management Board, notes that the index supports efforts to publicize Switzerland’s high standards in financial regulation, transparency, and compliance.
Expert Insights
“The GFRTCI can help to give guidance to policymakers in terms of strengths and weaknesses in specific areas,” Bürgi explains. “It also supports recent efforts undertaken by the Swiss financial center to publicize Switzerland’s high standards in terms of financial regulation, transparency, and compliance, and to back its claim of being materially equivalent to other jurisdictions such as the EU.”
Impact on the Swiss Banking Industry
The recognition is a significant boost for the Swiss banking industry, which has long been associated with secrecy. However, experts hope that the index will change Hollywood’s portrayal of Swiss banks, which often feature in movies and articles about money laundering and tax evasion.
Conclusion
“Switzerland’s initiatives have clearly been recognized in the global financial community,” Mettler concludes. “Now we just have to hope that Hollywood and fiction writers will finally realize it as well.”