Combating Money Laundering and Terrorism Financing: Liechtenstein’s Efforts
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The Principality of Liechtenstein has long been committed to combating money laundering and terrorism financing. As an EEA member, the country has implemented various EU directives and regulations to prevent these illicit activities.
The Financial Intelligence Unit (FIU): A Key Player in Anti-Money Laundering Efforts
At the heart of Liechtenstein’s anti-money laundering efforts is the Financial Intelligence Unit (FIU). The FIU plays a crucial role in:
- Receiving and analyzing reports of suspicious transactions from financial institutions, trust service providers, and other obligated entities.
- Analyzing general threats of money laundering, predicate offenses, and financing of terrorism.
The FIU’s primary responsibility is to report its findings to the Office of the Public Prosecutor, which then initiates investigations where necessary.
The Prosecution Process
If there is sufficient suspicion of an offense, charges are filed with the competent court. The prosecution authorities are responsible for enforcing the Criminal Code (money laundering and predicate offenses, financing of terrorism) and parts of the Law on Professional Due Diligence for the Prevention of Money Laundering, Organized Crime, and Financing of Terrorism.
International Recognition
Liechtenstein’s commitment to combating money laundering and terrorism financing has been recognized by international organizations such as the Financial Action Task Force (FATF). In 2021/2022, the country underwent a review of its anti-money laundering measures by MONEYVAL, an FATF-style regional body.
The Review Findings
The review found that Liechtenstein had made significant progress in implementing the 40 FATF Recommendations and rated the country’s compliance as “compliant” or “largely compliant” with 37 of the recommendations. The report also highlighted Liechtenstein’s strong supervisory approach to combating money laundering and terrorism financing, as well as its effective application of legal regulations in practice.
European Union/EEA Initiatives
In addition to its efforts to combat money laundering and terrorism financing, Liechtenstein has also been actively participating in European Union/EEA initiatives to strengthen cooperation on these issues. The country is represented in the AML CFT Standing Committee (AMLSC), which develops regulatory technical standards and guidelines for anti-money laundering measures.
Conclusion
Overall, Liechtenstein’s Financial Intelligence Unit plays a crucial role in combating money laundering and terrorism financing, and the country’s commitment to this effort has been recognized by international organizations.