SWISS ANTI-MONEY LAUNDERING RULES

ZURICH : Swiss financial regulator FINMA is planning to loosen anti-money laundering rules for smaller financial technology firms, part of a drive to boost innovation and sore up the country' position as a leading money management hub.

The revisions prompted by a new 'fintech' licensing category carved out by the Swiss parliament in June, will clarify how non-banks applying for the new license must ensure due diligence.

''As a rule, all financial institutions are subject to similar due-diligence requirements relating to combating money laundering.

However, as most  fintech  license applicants are likely to be smaller institutions, FINMA proposes to introduce some organisational relaxations for such institutions,'' the financial supervisor said in a statement. on Tuesday.

Its proposals define small institutions as those with gross revenues under 1.5 million Swiss francs [$1.5 million].

Under its terms small institutions, unlike banks, will not for instance have to establish an independent  anti-money  laundering unit with monitoring duties, it said.

Switzerland, the world's largest centre for offshore wealth, has gained prominence in recent years as a hub for  financial technology  providers,  such as banking software group Temenos and Avaloq, as welll as  cryptocurrency projects.

But advocates have warned that as banks face increasing margin pressure and tougher competition from technological rivals, more must be done to promote innovation if Switzerland is to remain a leading financial hub. [Reuters].