Switzerland Maintains Top Ranking in Global Financial Compliance Index

May 17, 2023

Switzerland has once again claimed the number one spot in the 2023 Global Financial Regulation, Transparency, and Compliance Index (GFRTCI) by the Swiss Finance Institute.

Switzerland’s Ranking in GFRTCI

Despite media scrutiny regarding its perceived role in money laundering, Switzerland outperformed the UK, US, and Luxembourg in the index. Christian Bretscher, director at the Zurich Banking Association, defended Switzerland’s position as a global leader in compliance and a leader in the world’s most efficient and clean banking sectors.

Switzerland ranked eighth in the GFRTCI, trailing seven non-global financial center European countries. However, the differences between the top-ranking countries are minimal, and Switzerland is well-known for banking stability, expertise, and financial privacy.

Enhancing Compliance and Transparency

To improve its standing, Switzerland plans to strengthen its efforts in key areas identified by the index, primarily focusing on anti-money laundering (AML) and information exchange. Christoph Basten, an Assistant Professor of Banking at the University of Zurich, noted the importance of these initiatives due to Switzerland’s role as a wealth manager for the world.

Establishing a Beneficial Owner Register

The Swiss Federal Council is working on a law draft to establish a beneficial owner register. Jan Langlo, director at the Association of Swiss Private Banks in Geneva, mentioned that the consultation is scheduled for this summer.

The Impact of Credit Suisse’s Collapse

The sudden collapse of Credit Suisse earlier this year raised concerns about Switzerland’s financial stability. However, experts argue that the Basel regulations and Swiss Finma rules effectively managed the crisis. Jan Langlo added, “The crisis was a loss of confidence, which could have occurred in any major financial center.”

Switzerland’s Anticipated Impact

Swiss authorities anticipate minimal international impact from the event, with Christian Bretscher stating, “Switzerland’s financial center will not be as damaged as it may seem to the domestic audience.”