Financial Crime World

Financial Regulation Updates in Switzerland: A Comprehensive Review of 2022 and Outlook for 2023

The financial services sector in Switzerland has undergone significant regulatory updates in 2022, with important legislative changes and developments impacting various areas. As the industry looks ahead to 2023, key trends and reforms are expected to shape the landscape.

Banking and Capital Markets

  • The Swiss government introduced new bank insolvency and depositor protection provisions.
  • The transitional period for asset managers and trustees to fulfill licensing requirements has come to an end.

Sustainable Finance

  • Sustainable finance has emerged as a key area of focus, with numerous measures and guidance aimed at combating greenwashing and ensuring companies align with sustainability reporting standards.
  • The EU has also introduced new regulations in this space.

Anti-Money Laundering (AML)

  • AML efforts have been strengthened, with the updated AMLA and AMLO-FINMA aiming to increase transparency for multi-layered companies.
  • The full revision of the CDB 20 is expected in 2025.

Sanctions

  • Sanctions related to the Ukraine crisis remain in place, with a strengthened framework on both Swiss and European levels.

Tax Developments

  • New amendments to the Federal VAT law and Withholding Tax Ordinance have been introduced.
  • Obligations under the Federal Law on Electronics Procedures took effect January 1, 2023.
  • Further changes are expected on national and international levels.

Digital Finance

  • The digital finance landscape has seen significant advancements, with Swiss policymakers promoting open finance and data exchange.
  • A new obligation to report cyber-attacks on critical infrastructure has been introduced.
  • International oversight standards and legislation aim to create a safer online environment.

Miscellaneous Topics

  • Modernized company and inheritance law have been revised.
  • The Swiss Data Protection Act and related ordinance have also been revised.

Conclusion

Thanks to our in-depth understanding of these areas, EY can help financial services organizations stay ahead of the curve and maintain excellence in an increasingly complex and interconnected world. For a comprehensive review of regulatory highlights in the financial services sector, read our Winter 2022/2023 edition.

Special Thanks

We would like to extend special thanks to the EY Law team and tax team for their valuable contributions and cooperation.