SWITZERLAND Law and Practice Contributed by: Judith Raijmakers and Florian Thomas Willi, Loyens & Loeff
es significant changes to the Swiss transaction reporting regime. The draft bill is open for public comments until 11 October 2024. The Federal Council will then prepare a revised version to submit to the Swiss Parliament, with this step likely occurring in 2025. With respect to AML, it is expected that at the earliest in January 2026, the federal act on the transparency of legal entities (TLEA) will come into force. The TLEA will – in line with the recom - mendations of the Financial Action Task Force (FATF) – introduce a federal register for the iden - tification of beneficial owners of the legal entities in scope. Currently, the CDB 20 is also under revision to consider adjustments made to the AMLA and its related ordinances as well as FATF recommendations. In a recent important development for banks, the FINMA circular “Operational Risks – Banks” has been completely revised and replaced by the new circular “Operational Risks and Resil - ience – Banks”, which came into effect in Janu - ary 2024. This circular considers technological developments and specifies the supervisory practice regarding the management of opera - tional risks, particularly in connection with ICT, the handling of critical data, and cyber risks. The circular also adopts the revised principles for managing operational risks and the principles on operational resilience published by the Basel
Committee on Banking Supervision in 2021. For certain aspects of operational resilience, transi - tional periods apply until December 2025. On 1 January 2025, DisO-FINMA will enter into force, replacing FINMA Circular 16/1 “Disclosure – Banks”. The ordinance will expand disclosure requirements in various areas (eg, in the credit valuation adjustment), and amendments will be made to certain existing disclosure templates and tables. With respect to FINMA initiatives, in Septem - ber 2024, FINMA launched a consultation on a new circular concerning consolidated supervi - sion. Such circular aims to clarify the scope and content of consolidated supervision, increasing transparency in FINMA’s supervisory practice. The consultation period runs until 1 Novem - ber 2024. The new circular is expected to enter into force in mid-2025. In October 2024, FIN - MA further launched a consultation on a new ordinance on insolvency proceedings at finan - cial institutions. This ordinance will replace the BIO-FINMA, the FINMA Insurance Bankruptcy Ordinance (IBO-FINMA), and the FINMA Collec - tive Investment Schemes Bankruptcy Ordinance (CISBO-FINMA). The new ordinance is looking to standardise procedures for financial market institutions subject to FINMA’s restructuring and bankruptcy jurisdiction. The consultation runs until 9 December 2024.
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