Maximum Fine for Anti-Money Laundering Violations Reaches CHF 1 Million
The Financial Market Authority (FMA) has announced a significant increase in the maximum fine for violating anti-money laundering (AML) obligations in Liechtenstein, now set at CHF 1 million.
Fines and Penalties for AML Non-Compliance
Financial institutions and designated businesses subject to AML requirements must report suspicious transactions promptly and maintain a paper trail for all transactions. Failure to comply can result in:
- Fines up to CHF 1 million or double the amount gained through the administrative infraction, whichever is higher
- Criminal charges
- Other sanctions, such as:
- Prohibiting the commencement of new business relationships for a limited period
- Public disclosure of decisions against a financial institution or business subject to AML requirements
- Temporary prohibition of activity
- License revocation
- Temporary prohibition of executive body members from performing their duties
Risk-Based Approach to AML Compliance
The FMA takes a risk-based approach to AML compliance, requiring financial institutions and designated businesses to:
- Identify and verify the identity of contracting parties, beneficial owners, and recipients of distributions
- Perform various duties related to AML reporting and record-keeping
Purpose of Increased Focus on AML Compliance
The increased emphasis on AML compliance is aimed at preventing money laundering, terrorist financing, and other financial crimes in Liechtenstein. The FMA is committed to ensuring that financial institutions and designated businesses comply with AML requirements and take a proactive approach to detecting and reporting suspicious transactions.
New Regulations for Token and Cryptocurrency Service Providers
In related news, the FMA has announced new regulations for token and cryptocurrency service providers operating in Liechtenstein. These providers must:
- Register with the FMA
- Comply with AML and counter-terrorism financing (CFT) requirements
Ensuring a Safe and Secure Financial Sector
The increased emphasis on AML compliance and regulation of token and cryptocurrency service providers is aimed at ensuring that Liechtenstein’s financial sector remains a safe and secure place for businesses and individuals alike.