Financial Crime World

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Liechtenstein’s Zero-Tolerance Approach to Money Laundering Detection

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In its ongoing efforts to combat money laundering and the financing of terrorism, Liechtenstein has implemented stringent anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations. As a member of the European Economic Area (EEA), Liechtenstein has transposed the 4th and 5th EU Anti-Money Laundering Directives and Regulation (EU) 2015/847 on information accompanying transfers of funds.

AML/CFT Responsibilities

The Financial Market Authority (FMA) is responsible for monitoring compliance with AML/CFT regulations by financial institutions, trust and corporate service providers, and designated non-financial businesses and professions (DNFBPs). The FMA:

  • Evaluates reports from the Due Diligence Act reporting system
  • Conducts on-site inspections
  • Takes action against violators

Due Diligence Obligations

Financial institutions, trust service providers, and DNFBPs must comply with AML/CFT rules when dealing with clients. These obligations include:

  • Identification and verification of clients and beneficial owners
  • Clarification of source of funds and wealth
  • Ongoing transaction monitoring
  • Reporting of suspected money laundering or terrorist financing

Financial Intelligence Unit (FIU)

The FIU receives and analyzes reports of suspicious activity from persons subject to due diligence and public authorities. It also:

  • Identifies general threats of money laundering, predicate offenses, and terrorism financing
  • Reports suspected criminal offenses to the Office of the Public Prosecutor if it suspects a criminal offense has been committed

Prosecution Authorities

The Office of the Public Prosecutor:

  • Investigates suspected AML/CFT offenses
  • Files charges with competent courts
  • Enforces the Criminal Code provisions related to money laundering and predicate offenses

Office of Justice

The Office of Justice maintains the Register of Beneficial Owners of Legal Entities, which provides information on beneficial owners of Liechtenstein companies, foundations, and trusts.

International Cooperation

Liechtenstein actively participates in AML/CFT efforts guided by international standards set by the Financial Action Task Force (FATF). The country:

  • Has been a member of MONEYVAL, an FATF-style regional body, since 1999
  • Was praised for its progress in improving its AML/CFT measures and rated “compliant” or “largely compliant” with 37 of the 40 FATF Recommendations

Cooperation at the European Level

Liechtenstein is a member of the European Banking Authority (EBA) and participates in the AML CFT Standing Committee, which develops regulatory technical standards and guidelines for the financial market.