Liechtenstein Cracks Down on Anti-Money Laundering Violations with Hefty Fines and Sanctions
The Principality of Liechtenstein has taken a significant step in combating money laundering and terrorist financing by introducing tough new measures, including substantial fines and sanctions for non-compliance.
New AML Law Requirements
According to the country’s anti-money laundering (AML) law, financial institutions and designated businesses are required to:
- Report suspicious transactions
- Provide accurate information to the Financial Intelligence Unit (FIU)
Failure to comply with these requirements can result in administrative penalties of up to CHF 1 million, or double the amount gained through the administrative infraction - whichever is higher.
Sanctions for Non-Compliance
In addition to monetary fines, supervisory authorities may impose other sanctions, including:
- Prohibition on new business relationships for a limited period
- Request for disciplinary measures from the competent authority
- Public disclosure of decisions against financial institutions or businesses
- Temporary prohibition of activity or license withdrawal
- Prohibition on executive functions for individuals
Criminal Offenses and Penalties
Violations of AML requirements related to suspicious transaction reports are considered criminal offenses, punishable by up to 5 years in prison.
Assessment and Collection Process
The process for assessing and collecting sanctions is overseen by the criminal court and supervisory authorities. Decisions can be appealed within 14 days, with a final ruling typically issued within 6 weeks.
Strengthening AML Measures
Liechtenstein has also introduced new regulations for Token and Trading Platform Operators (TT service providers), who must register with the country’s Blockchain Act and comply with AML requirements.
Commitment to Combating Money Laundering and Terrorist Financing
The country’s Minister of Finance emphasized that combating money laundering and terrorist financing is a top priority, stating:
“We are committed to ensuring that our financial sector operates in a transparent and responsible manner. These new regulations demonstrate our determination to prevent and combat money laundering and terrorist financing, while also promoting economic growth and stability.”
Conclusion
Liechtenstein’s new measures aim to protect its financial system from illegal activities and promote transparency and responsibility in the financial sector. With significant fines and sanctions for non-compliance, the country is sending a strong message that combating money laundering and terrorist financing is a top priority.