In a period of increased geopolitical tensions, legal and reputational risks have worsened for financial intermediaries managing clients affected by foreign sanctions, particularly in the context of sanctions against Russia. The provision of certain financial services and the granting of financial means are prohibited by trade restrictions (goods-related sanctions) and carry the risk of sanctions violation.
The responsibility for monitoring compliance with sanctions lies with the State Secretariat for Economic Affairs (SECO). FINMA’s mission is to supervise risk management in relation to sanctions. To protect the reputation of the Swiss financial center, on-site controls and clarifications regarding risk management in the area of sanctions are carried out at exposed institutions.
FINMA publishes the risk monitor annually. It provides an overview of what FINMA believes are the most important risks currently facing supervised institutions and describes the focus of supervisory activity. This creates transparency both for supervised institutions and the wider public about how FINMA fulfils its statutory responsibilities.
