The globalisation of the financial system has necessitated cross-border regulation and standards. As one of the world's leading financial centres, Switzerland works actively with relevant bodies and adopts the agreed global standards.
Adopting global standards
As a leading international financial centre, Switzerland plays a key role in shaping the global regulatory agenda and adopts the agreed financial market reforms. Applicable legislation has been enacted for this purpose and relevant national bodies have been tasked with monitoring implementation. This is intended to strengthen financial stability and bolster the credibility of the Swiss financial centre.
Key changes have been made to capital adequacy and liquidity requirements for banks. In addition, Switzerland has updated its financial market infrastructure, derivatives trading and anti-money laundering legislation. In 2017, legislation governing the international automatic exchange of information in tax matters was enacted, with the applicable provisions implemented in 2018. Leading-edge solvency rules had previously been introduced for Swiss insurance companies, which are recognised as being equivalent to EU rules.
Involvement in key international bodies
Switzerland is a committed member of key international bodies responsible for financial and tax matters, including the Organisation for Economic Co-operation and Development (OECD), the Financial Stability Board (coordination of financial market regulation), the International Monetary Fund, the Financial Action Taskforce (responsible for money laundering and terrorist financing prevention), and the Global Forum on transparency and exchange of information for tax purposes. In addition to defining new rules and standards, these international bodies also have a coordination and monitoring role. Furthermore, Switzerland has a national regulatory regime for monitoring compliance with established standards.
Automatic exchange of information, State Secretariat for International Finance (SIF)
Combating money laundering, Swiss Financial Market Supervisory Authority (FINMA)
Money Laundering Reporting Office Switzerland, Federal Office of Police (fedpol)
International bodies (BEPS, FSB, FATF, Global Forum, etc.), State Secretariat for International Finance (SIF)