Compliance Risks in Financial Services Pose Threat to Confidence in Liechtenstein’s Economic System

Liechtenstein’s financial sector has come under scrutiny as compliance risks threaten to undermine confidence in the country’s monetary, securities, and credit system. In response, the Financial Market Authority (FMA) is taking a proactive approach to ensure client protection.

Supervision and Regulation

The FMA’s supervision focuses on verifying whether licensing conditions are met and whether relevant laws and ordinances are being complied with. Key regulations include:

• Banking Act
• Banking Ordinance
• Due Diligence Act
• Financial Market Authority Act
• Financial Conglomerates Act
• Payment Services Act
• Other relevant legislation

To safeguard client protection, the FMA conducts regular checks on:

• Bank liquidity and capital
• Risk distribution
• Professional qualifications of board members and management
• Solid corporate governance

Dispute Resolution

In the event of disputes between clients and financial institutions regarding services provided, the Conciliation Board steps in to mediate a resolution. The board operates independently, impartially, and transparently to achieve an amicable agreement between parties involved.

The Role of Public Involvement

Citizens are urged to report any unlicensed companies or concerns to the FMA, which places great importance on active public involvement in maintaining financial stability.

Conclusion

Liechtenstein’s financial sector is navigating compliance risks, and it is crucial that the FMA’s proactive approach to client protection and dispute resolution maintains confidence in the country’s economic system. By working together, we can ensure a stable and trustworthy financial environment for all stakeholders.