Regulation and Compliance

Switzerland has historically maintained a light regulatory touch toward its commodity trading sector — but that era is definitively over. Russia sanctions adopted in 2022 marked a historic departure from Swiss neutrality. SECO’s enforcement capability has expanded. Transparency requirements are increasing. Our Regulation coverage tracks the evolving legal and compliance landscape for commodity trading companies operating in Geneva and Zug.

For decades, the absence of a dedicated commodity trading supervisory authority distinguished Switzerland from virtually every other major financial centre. Commodity traders operating from Geneva were not subject to FINMA licensing and faced fewer compliance obligations than their counterparts in London or Singapore. That regulatory environment enabled the trading hub’s growth but also attracted sustained criticism from transparency advocates, NGOs, and — increasingly — Swiss parliamentarians concerned about reputational risk.

The landscape has shifted materially since 2022. Switzerland’s adoption of EU Russia sanctions created new compliance obligations for oil traders, including the G7 price cap mechanism and origin verification requirements. SECO has expanded its enforcement resources and demonstrated willingness to investigate potential violations. The Federal Council has commissioned multiple reports on commodity trading supervision, and legislative proposals for a dedicated regulatory framework remain under active discussion. Our regulation coverage analyses these developments as they unfold: sanctions implementation and enforcement actions, legislative proposals and their likely impact, the evolving role of industry self-regulation, anti-money laundering obligations under AMLA, and the transparency and due diligence requirements emerging from the Swiss responsible business framework. Each article is grounded in primary legal and regulatory sources.