Financial Crime World

Swiss Financial Center Shines in Latest Global Regulatory Compliance Index

Switzerland’s reputation as a hub for financial compliance and transparency has been underscored in the latest Global Financial Regulation, Transparency, and Compliance Index (GFRTCI), created by a team of finance professors from the University of Miami and the Swiss Finance Institute (SFI).

Curiosity Sparks Research

Alfred Mettler, Finance Professor at the University of Miami and SFI Adjunct Professor, shared his curiosity about why Switzerland is often depicted negatively in media portrayals of money laundering, numbered accounts, and tax evasion. He questioned whether the country’s regulatory efforts in the past 15 years were being overlooked or undervalued (Mettler, 2021).

Collaborating with Professors Steven Ongena (SFI Senior Chair), Christoph Basten (SFI Faculty Member), and Markus Bürgi (SFI Management Board), the team set out to evaluate and rank different countries based on their regulatory, transparency, and compliance standards using publicly available data.

Top-tier Ranking

Switzerland, alongside Finland, Sweden, Denmark, Estonia, the UK, and Canada, ranks among the top-tier countries in the GFRTCI. This ranking is based on their robust implementation and consistent adherence to financial regulations (Ongena, Basten, & Bürgi, 2021).

EU Members Dominate Top 10

The implementation of Basel III has significantly boosted the rankings of many European Union (EU) member states, resulting in seven out of the top ten countries being EU members.

Insights for Policymakers

“The GFRTCI provides policymakers with valuable insights into specific areas of strength and weakness,” explained Markus Bürgi (SFI Management Board). “Furthermore, it amplifies recent efforts by the Swiss financial center to promote Switzerland’s high standards of financial regulation, transparency, and compliance and establish equivalence with other leading jurisdictions such as the EU” (Bürgi, 2021).

Changing Media Portrayal

Alfred Mettler believes the GFRTCI will contribute to altering the portrayal of Swiss banks in the media: “Switzerland’s regulatory efforts have been widely recognized within the global financial community. Now, we can only hope that Hollywood and fiction writers will eventually catch up” (Mettler, 2021).

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