Bank

April

FlowBank SA, a Swiss financial institution known for its online brokerage and cryptocurrency trading services, has been forced into bankruptcy by the Swiss Financial Market Supervisory Authority (FINMA) due to severe breaches of regulatory standards.&nbsp; 
The bank failed to meet minimum capital requirements and faced concerns of over-indebtedness, which led to the action 
FINMA initiated bankruptcy proceedings against FlowBank SA, citing the bank’s inability to maintain the necessary capital for operations. According to <a href="https://www.finma.ch/en/news/2024/06/20240613-mm-flowbank/" target="_blank" rel="noreferrer noopener nofollow">FINMA</a>, the bank’s financial situation declined significantly, leading to its failure to comply with capital requirements by the end of 2023 and April 2024. The regulator had previously taken enforcement actions against FlowBank SA for violating supervisory laws related to capital requirements, organizational deficiencies, and risk management. 
FlowBank SA was first penalized by FINMA in October 2021 for serious breaches in capital requirements. Subsequent actions in June 2023 revealed ongoing compliance failures, including inaccurate financial reporting, deficient organizational practices, and inadequate due diligence in business relationships. 
As a protective measure for depositors, FINMA has appointed Walder Wyss AG as the liquidator to oversee the bankruptcy proceedings. The regulator aims to repay privileged deposits, up to CHF 100,000 per client, using the bank’s available funds.&nbsp; 
This move aims to protect depositors from financial losses following the closure of FlowBank SA. The Swiss deposit insurance scheme is expected to remain uninvolved, given the availability of funds for the repayment of deposits. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2024/03/07/singaporean-fintech-teams-up-with-swiss-bank-to-launch-crypto-visa-ca" target="_blank" rel="noreferrer noopener">Singaporean Fintech Teams Up with Swiss Bank to Launch Crypto Visa Card</a> 
</blockquote>

Crypto-Friendly Swiss Bank FlowBank SA Forced into Bankruptcy by Regulator

The Crypto Times

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