Financial Crime World

Liechtenstein Stays Ahead of the Curve with Compliance Training for Financial Professionals

Liechtenstein has consistently demonstrated a strong commitment to combating money laundering and terrorist financing by implementing some of the toughest anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations in Europe. To ensure that financial professionals adhere to these strict rules, they must undergo rigorous compliance training.

The Law on Professional Due Diligence

The country’s financial institutions, trust service providers, and designated non-financial businesses and professions (DNFBPs) must conduct thorough due diligence on their clients, as outlined in the Law on Professional Due Diligence for the Prevention of Money Laundering, Organised Crime and Financing of Terrorism (Due Diligence Act; SPG). This includes:

  • Identifying and verifying clients’ identities
  • Ascertaining the source of funds and wealth
  • Monitoring transactions

Oversight by the Financial Market Authority

The Financial Market Authority (FMA) is responsible for monitoring compliance with AML/CFT regulations and imposing sanctions where necessary. The FMA also conducts on-site inspections and follows up on any suspicious activity reported by financial professionals.

International Cooperation

Liechtenstein has been a member of MONEYVAL, an FATF-style regional body, since 1999 and has undergone regular evaluations to ensure its AML/CFT systems are effective. In 2021/2022, MONEYVAL reviewed Liechtenstein’s implementation of the 40 FATF Recommendations and praised the country’s progress in improving its measures.

  • The report commended Liechtenstein for having a broad understanding of its money laundering and terrorist financing risks
  • For pursuing a strong supervisory approach
  • Scoring above average in five out of 11 “immediate outcomes” examined, demonstrating its commitment to effective AML/CFT implementation

Strengthening the AML/CFT Framework

As part of its efforts to strengthen its AML/CFT framework, Liechtenstein has established a Register of Beneficial Owners of Legal Entities, maintained by the Office of Justice. This register provides essential information on the beneficial owners of companies, foundations, and trusts.

International Cooperation at the EU/EEA Level

The European Banking Authority (EBA) has centralized AML/CFT responsibilities at the EU/EEA level, and Liechtenstein is represented in the AML CFT Standing Committee (AMLSC) as a non-voting member. The AMLSC develops regulatory technical standards and guidelines to ensure harmonization among national supervisory authorities.

Conclusion

Liechtenstein’s commitment to combating money laundering and terrorist financing is unwavering, and its financial professionals must undergo rigorous compliance training to ensure they adhere to the strict regulations in place. By staying ahead of the curve with its AML/CFT regulations and international cooperation, Liechtenstein continues to demonstrate its dedication to protecting the financial sector from illicit activities.