FINMA Chief Flags Elevated Money Laundering and Sanctions Risks in Switzerland

Switzerland continues to face elevated risks related to money laundering and financial sanctions, according to the head of the country’s financial market regulator. Stefan Walter, CEO of the Swiss Financial Market Supervisory Authority (FINMA), issued the warning during remarks at an event in Zurich on Tuesday.

Walter emphasized that money laundering concerns are no longer confined to Switzerland’s largest financial institutions. “These money-laundering risks were increasingly relevant for medium-sized and smaller banks,” he said, underscoring a shift in the threat landscape that requires broader vigilance across the financial sector.

Turning to sanctions risks, Walter pointed to the growing challenges associated with the enforcement of international measures, particularly those linked to Russia. He cautioned that there is a rising threat posed by attempts to evade these sanctions. “There was an increasing risk of individuals and [companies] trying to get around financial sanctions on Russia,” Walter noted.

He further explained that the likelihood of sanctions circumvention grows over time, adding that “the likelihood that individuals and companies circumvent sanctions increased the longer a regime lasted.” This time-based escalation of risk, he warned, places additional pressure on financial institutions tasked with compliance and monitoring.

“Against this backdrop, the associated risks for financial intermediaries increase,” Walter said, highlighting the need for sustained diligence within Switzerland’s banking and financial sectors.

By fLEXI tEAM