Financial Crime World

Switzerland’s Banking Compliance Crackdown: A Tripling of Suspicious Activity Reports in Three Years

In Europe’s financial district, Switzerland, the war against financial crime has intensified. The following data indicates a significant surge in suspicious activity reports (SARs) over the past three years.

Increased SARs Filings

  • Number of SARs reported in Switzerland tripled in the last three years
  • Combined value of these reports: approximately SFr54.5 billion

FINMA’s Role in Combating Financial Crime

The Swiss Financial Market Supervisory Authority (FINMA) is leading the charge against financial crime in Switzerland:

“Financial institutions in Switzerland have significantly stepped up their efforts to prevent money laundering and terrorism financing. Our heightened scrutiny has led to a surge in SARs, indicating a better understanding of the risks and a proactive approach to reporting.” - FINMA Spokesperson

Automated Reporting System (STRO)

Swiss financial institutions must file reports via the required Automated Reporting System (STRO), managed by the Swiss National Bank:

  • Enables faster investigations and action
  • Provides FINMA with detailed information on potentially criminal activities

Switzerland’s Robust Regulatory Framework

Switzerland’s robust regulatory framework and commitment to combating financial crime remains a desirable location for international businesses:

Regulation Introductions

  • FINMA mandated implementation of a Risk-Oriented Anti-Money Laundering (ROAML) framework
  • Participation in international accords:
    • Automatic Exchange of Information (AEOI)
    • Financial Action Task Force (FATF) recommendations

Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT)

The ROAML framework requires financial institutions to establish and implement an effective AML/CFT risk management system.

Addressing the Growing Number of Reports

Due to the increasing number of reports, FINMA acknowledged the need for additional resources and expertise:

“We’re investing heavily in building a world-class team of experts and enhancing our technology and data analytics capabilities. This will help us more efficiently tackle the growing number of reports.” - FINMA Spokesperson

Conclusion

Switzerland’s dedication to combating financial crime continues to grow, with a substantial increase in SARs filed and a strong resolve to maintain Switzerland’s reputation as a reputable financial hub. As FINMA and other authorities continue their crackdown, the trend towards stricter regulations and increased reporting is expected to persist.