Reputation and attractiveness, security and trust, discretion and responsibility... Swiss banking, with its centuries of experience, is a sector in constant evolution. A key element of its internationally renowned, reliable, and innovative financial ecosystem is the regulatory framework.
Reliable and independent legal system
In times of geopolitical tensions like the current one, Switzerland's stability and political certainty are undeniable attractions for those seeking a secure place to deposit their assets.
The country is characterized by a direct democracy system, which guarantees the separation of powers and the independence and reliability of its legal system, based on European continental law and centered on codes.
High rating in the GFRTCI
Financial regulation, transparency in actions, and regulatory compliance are crucial to the reputation and attractiveness of a financial center.
Switzerland's high ranking over the years in the Global Financial Regulation, Transparency, and Compliance Index (GFRTCI) demonstrates its quality and consistency as a benchmark financial marketplace. This indicator reflects the extent to which individual countries adopt, comply with, and enforce the most significant global standards.
Over the past four years, Switzerland has consistently ranked among the top ten countries. In 2023, it ranked eighth, behind Sweden, Finland, Estonia, Ireland, Denmark, the Netherlands, and France.
Low corruption rate
Switzerland maintains an effective legal and political framework for combating domestic corruption, with federal authorities responsible for investigating and prosecuting government malpractice. In fact, in the Corruption Perceptions Index published by Transparency International, which rates the public sector, Switzerland is among the top-ranked countries.
Regarding banking, institutions have established binding rules that govern how their activities are evaluated and reviewed. In their dealings with international organizations, banks adhere to global standards.
Extensive expertise and high-level skills in the financial system
The Swiss financial sector combines innovation with experience accumulated over generations, attributes supported by its experts' high level of training, enabling them to offer the best customer care and consistently strive for excellence in their services.
Swiss banks base their work on a centuries-old tradition as a leading financial center—the first private banks were founded in the 18th century—but they are also open and flexible in responding to the changing needs of their clients and society. One need only look at how Switzerland has fostered financial innovation by leveraging technological solutions. An example is Crypto Valley, an independent association with connections to international innovation centers, which creates an ecosystem for the development of cryptocurrencies and blockchain technology.
Responsible conduct towards customers
Swiss banking stands out for its sense of responsibility, its ability to adapt to the specific requirements of each client, and the quality of the advice and services provided, which include a wide variety of options.
Any person with legal capacity can open a bank account in the country; however, Swiss banks must also comply with the foreign legal and regulatory provisions applicable to cross-border transactions.
Prudential supervision and businesss-friendly regulation
Swiss banks act responsibly and discreetly towards their clients in a trustworthy environment regulated by the prudential supervisor FINMA (Swiss Financial Market Supervisory Authority), which is dedicated to protecting clients (creditors, investors, and policyholders) through regular external audits. All of this aims to ensure the sector's competitiveness and efficiency.
FINMA is a member of the Basel Committee on Banking Supervision and regulates and supervises all entities established in the country according to the Basel Committee's guidelines. These guidelines cover not only own funds and capital adequacy but also the entire scope of prudential and conduct of business rules.
High standards of data protection
Customer confidence in Swiss banks is exceptionally high. Among the main reasons are the rigorous data protection standards they apply, reinforced by banking secrecy, which ensures the confidential and responsible handling of users' identification data.
The industry has a long tradition of discretion, recognizing that detailed information about a person's financial situation is highly sensitive and an intrinsic part of their right to privacy.
CRS and FATCA tax transparency
The Swiss financial sector has been enhancing its tax transparency standards for years, adopting demanding international regulations such as the CRS (Common Reporting Standard), which is applied globally, and the US FATCA (Foreign Account Tax Compliance Act).
Both are legal instruments promoted by various organizations to help combat tax evasion and promote transparency in financial transactions, imposing strict information exchange requirements that Swiss entities diligently strive to meet.
