Liechtenstein Cracks Down on Financial Crime: Essential Prevention Tips

Understanding UN Sanctions

In light of its commitment to implementing United Nations (UN) sanctions and maintaining transparency in international relations, Liechtenstein has become a model for financial crime prevention. As a small but prosperous nation nestled between Switzerland and Austria, Liechtenstein’s robust framework against financial crimes is crucial to its economic stability.

EU Sanctions: A Stronger Stance

Liechtenstein not only adheres to UN sanctions but also autonomously adopts European Union (EU) sanctions, aligning itself with EU foreign policy statements. This comprehensive approach underscores its commitment to combating financial crimes and maintaining a secure economic environment.

Switzerland’s Influence on Liechtenstein Sanctions

Due to their shared customs territory under the 1923 customs treaty between Liechtenstein and Switzerland, the country considers Switzerland’s coercive measures when implementing sanctions. This demonstrates the close cooperation and mutual respect between the two nations in tackling financial crime.

Legislative Framework: Automatic Adoption of UN Sanctions Lists

The Law on the Enforcement of International Sanctions (ISG) serves as the legal basis for Liechtenstein’s domestic implementation of international sanctions. Since 2017, amendments to UN Security Council sanctions lists are automatically adopted and legally valid in Liechtenstein, ensuring swift implementation without delay.

Key Features of ISG

Automatic adoption of UN Security Council sanctions lists
Swift implementation without delay
Alignment with Financial Action Task Force (FATF) standards

Competent Authorities: Enforcing Sanctions

The Office for Foreign Affairs and Government Legal Services oversee the domestic implementation of international sanctions into national law. The Financial Intelligence Unit (FIU) functions as an enforcement authority for financial sanctions and examines exemption requests.

The FIU offers a newsletter service to inform due diligence entities about changes to sanctions lists. The UN homepage provides publicly available information on directly legally valid UN sanctions lists, ensuring transparency and access to critical data for compliance purposes.

Delisting Procedures: A Step-by-Step Guide

For those seeking delisting procedures related to UN sanctions, the Office of the Ombudsperson handles cases involving ISIL (Da’esh) and Al-Qaida sanctions. The Focal Point for De-listing is responsible for all other UN sanctions regimes.

Important Resources

ISG Guidance and Instruction on Procedures for Requests for Inclusion on or Removal from a Sanctions List (available on the FIU homepage)
FIU newsletter service
UN homepage with publicly available information on directly legally valid UN sanctions lists

In conclusion, Liechtenstein’s commitment to financial crime prevention through its implementation of UN sanctions, adoption of EU sanctions, and automatic adoption of UN sanctions lists demonstrates its dedication to maintaining a secure economic environment. By staying informed about competent authorities, resources, and delisting procedures, individuals and entities can navigate the complex landscape of financial crime prevention in Liechtenstein with confidence.