Swiss Authorities Issue Regulatory Updates for Financial Entities
The Swiss Financial Market Supervisory Authority (FINMA) issued statements on the extension of protective measures at Sberbank (Switzerland) AG as well as on the changing ownership of Sberbank (Switzerland) AG. In addition, the Swiss Federal Council issued the implementing provisions in various ordinances related to the Anti-Money Laundering Act. The Federal Council also adopted a framework for issuance of green Confederation bonds, with the first bond scheduled to be issued in Autumn 2022.
Below are key highlights of the recent updates:
- FINMA informed that it has temporarily lifted its protective measures at Sberbank (Switzerland) AG from September 02, 2022 to September 05, 2022 to enable the sale of Sberbank (Switzerland) AG to go through. The Russian parent company of Sberbank (Switzerland) AG is selling its holding to Geneva-based m3 Groupe Holding SA. The restructured bank will continue its operations on the basis of the existing FINMA license under the new name of TradeXBank AG. FINMA is closely overseeing the transaction and has temporarily lifted the protective measures it imposed in March 2022 to protect the bank's creditors.
- During a meeting on August 31, 2022, the Federal Council brought the revised Anti-Money Laundering Act (AMLA) and the amended Anti-Money Laundering Ordinance (AMLO) into force with effect from January 01, 2023. The Federal Council brought the first part of the revised AMLA into force on January 01, 2022 and the main part will follow on January 01, 2023. The Federal Council is issuing implementing provisions in various ordinances, including on reporting, on the introduction of a control mechanism for the purchase of precious metal scrap, and on the new mandate of the Central Office for Precious Metals Control as a money laundering oversight authority. The duties in the event of a suspicion of money laundering will no longer be set out in ordinances of the supervisory authorities; instead, they will be regulated by the Federal Council.
- By issuing the Green Confederation bonds, the Federal Council intends to promote the application of international standards on the Swiss capital market and encourage private-sector players to issue their own green bonds. The framework adopted by the Federal Council forms the basis for issuing green Confederation bonds in the future. It shows how the bonds will be integrated into the federal government's sustainability strategy, which green expenditure from the federal budget can be allocated to green Confederation bonds and how this expenditure will be reported. The precise specifications for the first issue (volume, maturity, coupon) will depend on the Confederation's funding requirements and the prevailing market conditions at the time of issuance.
Related Links
- Press Release on Protective Measures at Sberbank
- Press Release on Sale of Sberbank
- Press Release on Anti-Money Laundering Act
- Press Release on Green Confederation Bond
Keywords: Europe, Switzerland, Banking, Regulatory Capital, Sberbank, Anti Money Laundering Act, ESG, Credit Risk, Green Bonds, AML CFT, Sustainable Finance, Swiss Federal Council, FINMA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Hasan Cerhozi
Hasan leads Moody’s Analytics ESG methodology development. He is expert on carbon transition, nature related risks and is a guest lecturer at ESSEC Business school on sustainable finance.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
OJK Proposes to Amend Capital Adequacy Rules for BanksRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.