English in Financial Services

Calibration of rule-based Transaction Monitoring vendor systems

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This is the second blog in our series on Transaction Monitoring (TM) in the context of Anti-Money-Laundering (AML). In our first blog, we introduced the topic and described common challenges. In this blog, we discuss elements affecting the efficiency of AML TM and best practices.

Most banks and some insurance companies rely for Transaction Monitoring on a vendor system based on deterministic rules. However, each financial institution has a distinct customer base with different behaviours and risk profiles. It is therefore essential to calibrate the AML transaction monitoring system specifically to the institution's customer base. This means ensuring that the system is sensitive to the nuances of customer activities, geographic footprint and products offered of the specific institution.

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Posted on 4/02/2025 | 0 Comments

Navigating Complexity: How a strategic Target Operating Model drives success in modern Investment Management

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In the increasingly complex and demanding world of investment management, a well-defined and strategic Target Operating Model (TOM) is essential for firms to maintain a competitive edge. A strong TOM is built of different components, covering different aspects within the organisation, such as processes, technology, governance, and human capital.

This blogpost outlines the key components in the transformation of their TOM by investment management firms. By following a structured framework, firms can better navigate industry challenges, close capability gaps, and position themselves for sustained success.

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Posted on 28/01/2025

Automating Client Lifecycle Operations

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For over a decade wealth management, particularly within Swiss private banking, has been in a state of flux, driven by digitalisation, cost pressures, and market consolidation. As the pace of change accelerates, the limitations of traditional Client Lifecycle Operations (CLO) have become increasingly evident. Chief Operating Officers (COOs) are grappling with fragmented processes, compromised data integrity, and inconsistent client experiences.

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Posted on 21/01/2025 | 0 Comments

Banking's evolving risk landscape: The case for smart internal controls

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In a financial environment shaped by rapid technological advancements and increasing regulatory demands, robust Internal Control Systems (ICS) are more critical than ever. In this blog, we explore the regulatory landscape for ICS in banking, examine real-world consequences of control failures, and present Deloitte's Smart Controls Framework. This blog provides actionable insights for financial institutions to strengthen their control frameworks, ensuring resilience and positioning for long-term success.

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Posted on 14/01/2025 | 0 Comments

AML Transaction Monitoring: Challenges and opportunities

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Banks are required to monitor transactions to detect suspicious transactions linked to possible money laundering, as mandated in Art. 20 of the FINMA AML Ordinance. Increasingly insurance companies are doing the same and implementing AML Transaction Monitoring (TM) as part of their anti-financial crime procedures. However, despite substantial investments in anti-money-laundering (AML) measures, many financial institutions struggle with inefficient transaction monitoring (TM).

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Posted on 9/12/2024 | 0 Comments

Sustainable finance - There is progress on climate in banking and insurance supervision, but nature loss remains neglected

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Deloitte is proud to have supported WWF with the production of their fourth annual Sustainable Financial Regulations and Central Bank Activities (SUSREG) report 2024. The report evaluates progress on the integration of climate, environmental and social risks into central banking as well as banking and insurance supervision activities.

Four key highlights:

  1. Notable progress in banking and insurance supervision – From 2021 to 2024, banking supervision showed an 18% increase in climate-related measures, with a similar increase in insurance supervision of 17% since 2022.
  2. High-income countries showing progress – 20 out of 29 high-income countries within the scope of the SUSREG assessment align with more than 50% of climate supervision indicators within banking. However, this is contrasted with 14 high-income countries showing less than 50% alignment on nature-related supervision indicators.
  3. Nature risks challenges – As previously mentioned, there is low fulfilment of nature-related indicators, with 31 countries failing to align with more than 50% of SUSREG environmental indicators. Moreover, 7 of the top 10 biodiversity hotspot nations lag behind in banking supervision for nature-related risks, and all 10 are falling short in integrating these risks into insurance supervision.
  4. Inadequate management of social risks – Alignment with the social criteria in SUSREG is significantly lower compared to the climate and environmental criteria, with only 32% banking supervision alignment and 27% for insurance supervision.

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Posted on 22/10/2024 | 0 Comments

Join us on 5 December 2024 in Zurich for an event on the Crypto-Asset Reporting Framework (CARF)

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As the adoption of crypto assets continues to grow, the need for clear and standardized tax regulations has become essential. As of 1 January 2026, the Crypto-Asset Reporting Framework (CARF), the new information exchange regime focusing on crypto transactions, will come into force. CARF aims to enhance transparency and compliance surrounding the taxation of crypto assets by clarifying the responsibilities of different service providers involved in crypto-related transactions.

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Posted on 16/10/2024 | 0 Comments

Adapting to change in an evolving business environment: Trends and implications for Swiss Investment Managers

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Introduction: Industry forces driving change

I. Building external and internal pressures 

The Swiss investment management industry has faced several significant challenges in recent years.

  1. Macroeconomic pressures: Against a background of pressures on margins, high inflation, rising interest rates, and geopolitical instability, recent years have been some of the few since the late 1990s in which the bond and equity markets were bearish at the same time.
  2. Shifting client expectations: Besides a challenging economic environment, the level of professionalisation (and correspondingly expectations) among clients has increased, leading to higher scrutiny of asset managers’ performance and processes.1
  3. Increasing regulations: Increased regulation as a consequence of emerging investment solutions and technologies are putting further pressure on costs.2

We observe that Swiss asset managers are taking measures to improve their Target Operating Model (TOM) to address the above challenges. Offering more attractive investment solutions, having an operating model that allows for scalability, and controlling the cost base have become critical areas of focus.

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Posted on 30/09/2024 | 0 Comments

Navigating tech-enabled transformation of core banking processes | Part 4: Safeguarding success through post-implementation monitoring

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Post-implementation monitoring for a successful market go-live

The digital transformation of core banking processes is a monumental undertaking but, in the current market, it is no longer an option, it is a necessity. Organisation that embrace this shift to state-of-the-art digital systems unlock a future of enhanced customer experience and innovation, streamlined operations and improved agility (see Part 1 of this blog series[1]). Transformation journeys do not end, however, with the development of a new system (see Part 2[2]) or change management initiatives (see Part 3[3]), but rather with a successful roll-out and adoption. This is where the post-implementation monitoring steps in, playing a vital, yet often underestimated, role in solidifying and capitalising the benefits of the transformation to ensure long-term success. This last blog in the series explores Phase 6: Post-implementation monitoring and commercialisation (in dark blue in Figure 1) with a focus on lending process transformation as an example.

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Posted on 11/07/2024 | 0 Comments

Are you ready to comply with the Swiss implementation of the crypto information exchange standard CARF?

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As one of the first countries, Switzerland published its draft legislation for the domestic implementation of the OECD’s Crypto-Asset Reporting Framework (CARF). In particular, on 15 May 2024, the Swiss authorities launched a combined consultation on CARF and the amendments to the Common Reporting Standard (CRS 2.0), proposing respective additions and amendments to the Automatic Exchange of Information (AEI) Act and Ordinance. The consultation runs until 6 September 2024, and new and amended rules are anticipated to come into force on 1 January 2026. While this blog focuses on the Swiss CARF implementation, we will publish a second blog shortly focusing on CRS 2.0 and the more general aspects of the consultation.

With respect to CARF, the consultation documents require Reporting Crypto-Asset Service Providers (RCASPs) in Switzerland to comply with CARF and additionally set out Swiss-specific rights and obligations. The consultation materials should be read in conjunction with the CARF itself as the Swiss legislation does not repeat the definitions and rules already included in the CARF. For a general introduction into CARF with a focus on the scope of crypto service providers affected including practical examples, please refer to our article (co-authored with Pascal Michel form the Swiss Federal Tax Administration (SFTA)) that was published in the April edition of the Expert Focus. In this blog, we highlight the key observations from the draft legislation in relation to CARF:

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Posted on 2/07/2024 | 0 Comments

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