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Compliance Risks in International Transactions in Liechtenstein Come Under Scrutiny

The Principality of Liechtenstein has made significant strides in recent years to comply with international standards on financial market supervision. However, despite these efforts, compliance risks remain a pressing concern for Liechtenstein’s financial institutions.

A Robust System to Combat Money Laundering and Terrorism Financing

According to a report published by MONEYVAL in June 2022, Liechtenstein has put in place a robust system to combat money laundering and terrorism financing. Nevertheless, the report highlights the need for continued vigilance to address emerging risks.

Key Findings of the MONEYVAL Report

  • Liechtenstein’s financial institutions have made significant progress in implementing anti-money laundering measures.
  • However, there is still room for improvement in maintaining a risk-oriented approach to supervision.
  • Financial institutions must remain vigilant in their efforts to prevent money laundering and terrorist financing.

Assessments by International Organizations

Liechtenstein has demonstrated its commitment to complying with international standards through its participation in various assessments and evaluations. These include:

Assessments Conducted by the IMF and MONEYVAL

  • In 2013, an international team of evaluators from the IMF and MONEYVAL assessed Liechtenstein’s compliance with international standards against money laundering.
  • The report highlighted the country’s efforts to combat money laundering and terrorist financing.

Supervisory Standards in International Cooperation and Information Exchange

In 2009, the Financial Stability Board (FSB) analyzed supervisory standards in the area of international cooperation and information exchange in major financial centers, including Liechtenstein. The report noted that the country’s supervisory system was among the best of its kind.

Conclusion

The assessments conducted by MONEYVAL, IMF, and FSB demonstrate Liechtenstein’s commitment to compliance with international standards on financial market supervision. However, they also underscore the need for continued vigilance in addressing emerging risks and maintaining a robust system to combat money laundering and terrorist financing.

Recommendations

  • Financial institutions in Liechtenstein must remain proactive in their efforts to prevent compliance risks.
  • They must maintain high standards of integrity in international transactions.
  • By doing so, they will contribute to the country’s reputation as an offshore financial center and ensure the stability and security of the global financial system.

Sources

  • MONEYVAL Report (2022)
  • IMF Country Reports (2008, 2013)
  • Financial Stability Board: Global adherence to regulatory and supervisory standards on international cooperation and information exchange
  • Government Press Releases (German)