The Swiss Financial Market Supervisory Authority FINMA revised its Anti-Money Laundering Ordinance (AMLO-FINMA). The changes are part of an overall package and include measures resulting from the Financial Action Task Force's (FATF) mutual evaluation report on Switzerland. The changes also take account of feedback from the consultation phase and the revised ordinance will enter into force on January 01, 2020.
In the context of the fourth country review of Switzerland, FATF identified a range of weaknesses in Switzerland's arrangements for combating money laundering and the financing of terrorism. As a result, Switzerland is now engaged in an enhanced follow-up procedure. To exit this procedure successfully, Switzerland will have to implement a number of changes, which includes amending the AMLO-FINMA. The draft ordinance is part of a package of follow-up measures related to the FATF country review.
The revised FINMA Anti-Money Laundering Ordinance (AMLO-FINMA) addresses shortcomings identified in the FATF country review and incorporates findings from FINMA's supervisory and enforcement practice. It will give financial intermediaries the time they need to come into line with the new rules. Further, it allows Switzerland to demonstrate to FATF in the next follow-up report that it is making progress on addressing key issues. The amended AMLO-FINMA sets out in more detail the requirements for global monitoring of these risks. This affects Swiss financial intermediaries with branches or group companies outside Switzerland. It also specifies the risk management measures that must be put in place if domiciliary companies or complex structures are used or if there are links with high-risk countries. In addition, FINMA has reduced the threshold for identification measures for cash transactions to the FATF level of CHF 15,000.
Related Link: Press Release and Related Documents
Effective Date: January 01, 2020
Keywords: Europe, Switzerland, Banking, AML, AMLO-FINMA, FATF, FINMA
BCBS published a technical amendment to the capital treatment of securitizations of non-performing loans by banks.
BoE announced that the Data and Statistics Division is planning to move collection of statistical data to the BoE Electronic Data Submission (BEEDS) portal.
APRA published the updated reporting standards and guidance for the collection of Economic and Financial Statistics (EFS), following a consultation process. Also published was a response letter to the feedback received on the proposal for amending the EFS reporting standards and guidance.
EC is consulting on a draft delegated regulation to supplement the Taxonomy Regulation (2020/852) by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as environmentally sustainable.
The IFRS Foundation published material highlighting the ways in which existing requirements in IFRS standards require companies to consider climate-related matters when their effect is material to the financial statements.
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.