The Swiss Financial Market Supervisory Authority (FINMA) has issued a warning about the increasing uncertainty facing the Swiss financial sector due to geopolitical conflicts worldwide.
FINMA's latest annual risk monitor highlights a rise in both financial and non-financial risks, with a focus on outsourcing and sanction risks for financial institutions.
The authority has expanded its access to data and is conducting on-site reviews and investigations into sanctions management at institutions with significant exposure to these risks.
FINMA has also raised concerns about the growing number of cyber attacks targeting the financial sector and is increasing on-site inspections at key service providers to ensure robust cybersecurity protocols.
Despite these risks, other financial risks related to real estate, credit, liquidity, market access, and money laundering persist.
FINMA has adapted its regulatory framework to address these emerging risks and emphasizes the need for robust risk management practices.
The Swiss financial sector must remain vigilant and responsive to the dynamic risks posed by geopolitical conflicts, regulatory adaptations, and market conditions.