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Liechtenstein Banking Regulation: A Comprehensive Overview

In Liechtenstein, there is no specific law governing the relationship between banks and their customers or third parties. Instead, the general rules and provisions on contracts and legal transactions outlined in the Liechtenstein Civil Code (ABGB) apply to these relationships.

Contract of Mandate in Banking Business

The contract of mandate is commonly used in banking transactions. According to Section 1009 of the ABGB, the agent (bank) is obliged to carry out the transaction diligently and honestly, in accordance with its promise and the granted power of attorney. The bank must also transfer all benefits arising from the transaction to the principal.

General Terms and Conditions

Liechtenstein banks typically have their own General Terms and Conditions that govern their relationships with customers. These terms must meet certain criteria to be valid and applicable. Unusual provisions in General Terms and Conditions may not become part of the contract if they are detrimental to the customer, unless the bank has explicitly informed the customer.

Consumer Protection Act

The Consumer Protection Act (KSchG) also applies to banking relationships. This act contains more favorable provisions for customers and supersedes applicable provisions in the ABGB when individuals are involved.

Cross-Border Banking Activities

Banks from EEA countries can operate in Liechtenstein under the freedom to provide services, provided they have notified the Financial Market Authority (FMA) prior to their first activity. Banks from non-EEA countries must establish a branch in Liechtenstein and obtain a licence from the FMA.

Conciliation Board

The Liechtenstein legislature has introduced an extrajudicial conciliation board, which supersedes the previously existing bank ombudsman. The conciliation board settles disputes between customers and banks regarding banking services provided by the bank. The board acts as a mediator to resolve complaints submitted by customers, but its decisions are not binding.

Contact Information

For more information on Liechtenstein’s banking regulation, please contact: