Swiss lawmakers resist anti-money laundering law due to competitiveness concerns.

Swiss lawmakers are pushing back on an anti-money laundering law due to concerns over competitiveness. The law would require banks to conduct more thorough checks on clients, which could deter foreign investment. UBS Group AG, a Swiss bank, operates in four areas: wealth management, investment banking, retail and corporate banking, and asset management. The bank had USD 745.8 billion in current deposits and USD 580 billion in current loans at the end of 2024.

Swiss lawmakers have voted to stick to the existing timetable for introducing new rules on bank capital quality, meaning that UBS Group AG’s capital requirements could rise by some US$3 billion (RM12.63 billion) as early as next year Swiss lawmakers vote to move ahead on bank capital revamp^[1]. This decision, made by the lower house on Monday, means that the measure will not be bundled with other reforms launched after the demise of Credit Suisse, as some had proposed.

The new rules aim to update how lenders quantify intangible items such as deferred tax assets, in-house software, and other hard-to-value items on their books. UBS shares fell as much as 2% in early trading on Tuesday, underperforming the Swiss Market Index, likely due to the increased capital requirements Swiss lawmakers vote to move ahead on bank capital revamp^[1].

This decision is part of Switzerland's broader effort to revamp financial regulation in the wake of the collapse of Credit Suisse in 2023 and its subsequent purchase by UBS. The enlarged size of UBS has prompted concerns that Switzerland may not be able to bail it out in any future crisis, leading to demands for as much as US$26 billion in extra capital Swiss lawmakers vote to move ahead on bank capital revamp^[1].

Separately, Swiss lawmakers are pushing back on an anti-money laundering law due to concerns over competitiveness. The law would require banks to conduct more thorough checks on clients, which could potentially deter foreign investment Swiss lawmakers push back on anti-money laundering law over competitiveness concerns^[2]. UBS Group AG, a Swiss bank, operates in four areas: wealth management, investment banking, retail and corporate banking, and asset management. At the end of 2024, the group had USD 745.8 billion in current deposits and USD 580 billion in current loans Swiss lawmakers push back on anti-money laundering law over competitiveness concerns^[2].

The Swiss parliament is expected to debate and decide on the changes in 2027, with them taking effect in 2028 or 2029. The delay in finalizing the regulation overhaul is due to concerns that it could cause significant delays in other banking stability measures Swiss lawmakers vote to move ahead on bank capital revamp^[1].

These developments highlight Switzerland's ongoing efforts to balance financial stability and competitiveness in the face of global regulatory pressures.