Compliance Report: LLB Liechtenstein Bank

Basel III Framework Implementation

The EU has implemented further key elements of the Basel III framework through amendments to the Capital Requirements Regulation II (CRR II) and Capital Requirements Directive V (CRD V). These regulations have been applicable in the EU since June 2021, while LLB in Liechtenstein adopted them on May 1st, 2022.

Deposit Guarantee Schemes

• The Deposit Guarantee Schemes Directive (DGSD) requires EEA member states to recognize at least one national guarantee scheme for deposit guarantees at banks.
• Every bank must be a member of a deposit guarantee scheme supervised by a national authority.
• LLB has joined the Deposit Guarantee and Investor Compensation Foundation (EAS).

Recovery and Resolution Planning

The Bank Recovery and Resolution Directive (BRRD) introduced minimum requirements for the recovery and resolution of credit institutions. As a systemically important bank in Liechtenstein, LLB must draw up a recovery plan outlining measures to restore financial soundness in crisis scenarios.

Regulatory Development in Sustainability

The EU promotes sustainable development and has implemented various legislative initiatives:

• Regulation (EU) 2019/2088: On sustainability-related disclosures in the financial services sector
• Regulation (EU) 2020/852: On the establishment of a framework to facilitate sustainable investment
• Directive (EU) 2022/2464: Amending Regulation (EU) 537/2014 and Directives 2004/109/EC, 2006/43/EC, and 2013/34/EU governing corporate sustainability reporting
• Delegated Regulations on product monitoring, AIFM, and UCITS

LLB is implementing these regulations and expanding their Group Corporate Compliance department to include a Senior Compliance Officer focusing on ESG compliance.