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Financial Institutions and Businesses Face Stricter Anti-Money Laundering Requirements
In an effort to combat financial crimes and money laundering, the Liechtenstein government has introduced stricter anti-money laundering (AML) requirements for various financial institutions and businesses. The new regulations aim to ensure that these entities are equipped to identify and prevent suspicious transactions.
Who is Affected?
The AML requirements apply to a wide range of financial institutions and businesses, including:
- Banks and investment firms
- E-money businesses
- Undertakings for collective investment
- Insurance undertakings
- The Liechtensteinische Post Aktiengesellschaft (in certain cases)
- Exchange offices and online gaming providers
- Asset management companies
- Providers of certain services for legal entities
- Lawyers and law firms providing tax advice or assisting with financial transactions
- Real estate agents and persons trading in goods (certain conditions apply)
What are the Requirements?
Entities subject to AML requirements must perform a range of duties, including:
- Identifying and verifying the identity of contracting parties, beneficial owners, and recipients of distributions from legal entities
- Establishing a business profile
- Supervising business relationships based on risk levels
In addition, these entities must conduct timely risk-adequate monitoring of their business relationships and transactions to ensure that they are consistent with their knowledge of customers and their business relationships. This includes being alert to changes in customer behavior or deviations from typical patterns.
What Types of Payments are Subject to AML Requirements?
AML requirements apply to various types of payments, including:
- Cash transactions exceeding CHF 10,000
- Transactions involving crypto-assets (certain conditions apply)
- Payments related to the trade of artworks (certain conditions apply)
There are some exceptions to these requirements, however.
Why is this Important?
The new AML regulations aim to prevent money laundering and other financial crimes by ensuring that financial institutions and businesses have robust systems in place to identify and report suspicious transactions. This will help to maintain the integrity of the financial system and protect consumers from fraudulent activities.