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Anti-Money Laundering Requirements for Financial Institutions and Businesses

Overview

The following article provides an overview of anti-money laundering requirements for financial institutions and other businesses in Liechtenstein. It covers the types of institutions and businesses subject to these requirements, their obligations, and the applicable penalties for non-compliance.

Types of Institutions and Businesses Subject to Anti-Money Laundering Requirements


The following institutions and businesses are subject to due diligence (anti-money laundering) requirements:

  • Exchange dealers
  • Securities traders
  • Money changers
  • Credit institutions
  • Financial intermediaries
  • Hierarchy of financial service providers, including those providing exchange services
  • Liechtensteinische Post Aktiengesellschaft (insofar as it pursues activities beyond its postal service that must be reported to the FMA)
  • Other businesses and professionals listed in the law, including lawyers, notaries, accountants, trust and company service providers, etc.

Professional Activities Subject to Anti-Money Laundering Requirements


The following professional activities are subject to anti-money laundering requirements:

  • Exchange dealers
  • Securities traders
  • Money changers
  • Credit institutions
  • Financial intermediaries
  • Hierarchy of financial service providers, including those providing exchange services

Obligations of Financial Institutions and Businesses


The obligations of the financial institutions and businesses subject to due diligence include:

  • Conducting customer due diligence (CDD) on customers
  • Establishing and maintaining internal policies, procedures, and controls to prevent money laundering and terrorist financing
  • Reporting suspicious transactions to the FIU
  • Freezing assets in case of a suspicion of terrorist financing

Statute of Limitations for Enforcement Actions


The limitation period for bringing enforcement actions is three years, with respect to penalties. For all other supervisory measures, there is no explicit limitation period.

Maximum Penalties for Non-Compliance


The maximum penalties for failure to comply with anti-money laundering requirements are:

  • Six months of imprisonment or a monetary penalty of up to CHF 360,000 (up to 360 daily penalty units of a maximum of CHF 1,000)
  • A fine of up to CHF 200,000 for administrative infractions which are prosecuted and judged by the FMA and not by the public prosecutor’s office and the criminal court
  • In case of serious, repeated or systematic violations, the fine for administrative infractions can be raised up to CHF 5,000,000, or up to 10% of the annual total turnover (whichever amount is higher)
  • For some of the businesses subject to due diligence obligations, the maximum fine is CHF 1,000,000, or double the amount gained through the administrative infraction (whichever amount is higher)

Types of Sanctions for Non-Compliance


The supervisory authorities may:

  • Prohibit the commencement of new business relationships for a limited period of time
  • Request the competent authority to undertake appropriate disciplinary measures
  • Publicly disclose decisions against a financial institution or business subject to due diligence requirements (including the name of the infringer)
  • Temporarily prohibit the performance of the activity it has authorised under special legislation
  • Withdraw the licence it has granted.