De-risking and the burden on clients

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The demanding Swiss regime has a side that is rarely discussed in legislation but felt daily by clients: the decision of banks to avoid risks by avoiding clients. This phenomenon, known as de-risking, describes the termination or refusal of business relationships with entire categories of clients whose risks a bank considers too costly to manage. Such categories have included clients from certain countries, politically exposed persons, money transmitters, charities active in conflict regions and businesses in the field of crypto-assets and digital assets. The Financial Action Task Force has warned that de-risking can push transactions into less transparent channels and exclude legitimate clients from the financial system.¹

For a private client, the burden of compliance appears in many forms. The opening of an account may take weeks and require documents on the origin of wealth going back many years, such as sale contracts, inheritance documents, tax returns and audited accounts. Existing relationships are reviewed periodically. When information is missing, the bank may freeze transactions until it is provided. A bank may also decide to terminate a relationship without giving reasons, which often surprises clients with long and unblemished relationships.

The termination of a relationship after a report to MROS is subject to particular rules. Since the revision of 2023, a financial intermediary may terminate a relationship if MROS has not informed it within a certain period that the report has been forwarded to a prosecution authority. In that case, the withdrawal of significant assets must take a form that allows the authorities to follow the trail, such as a transfer to an identified account. The client is not informed of the report and therefore often does not understand why the relationship has ended.²

For lawyers who assist clients in these situations, the work combines compliance and advocacy. It consists in preparing the documentation that a bank needs before it is requested and in explaining unusual structures or transactions in a way that a compliance department can follow. Where a relationship has been terminated, the task is to secure the orderly transfer of the assets. The best protection for a client is a well-documented history of the origin of his wealth. Basel, with its old family fortunes and its international industrial wealth, has many clients for whom this documentation is available, provided someone takes the trouble to assemble it.

Notes

On de-risking and the statements of the FATF on de-risking (2014) and on the unintended consequences of the FATF standards (2021), see the FATF publications. To be verified. ↩
On the termination of business relationships after a report to MROS (Art. 9b AMLA, in force since 1 January 2023, termination after 40 working days without notification by MROS; withdrawal of significant assets only in a form allowing the trail to be followed), see SR 955.0. Period and details to be verified. ↩

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of August 2025.

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Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

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De-risking and the burden on clients

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