Financial Crime World

Title: Liechtenstein: A Microstate Fighting Financially-Motivated Crimes and Maintaining Societal Integrity

Overview of Crime in Liechtenstein

Amid the scenic Alpine landscape of Liechtenstein, a tiny European principality, lies a complex web of financial transactions and potential criminal activity. While some illicit markets are minimal or non-existent, other forms of financial and cyber crimes pose persistent challenges.

Human Trafficking and Smuggling

  • Suspected to exist in small, unconsolidated markets
  • Demand present primarily in nightclubs
  • Most evidence points to foreign actors
  • Effective state strategy keeps issue at bay

Arms Trading

  • Small market overshadowed by larger neighbors
  • Regulations control import, export, and transit
  • Isolated incidents of very small-scale smuggling
  • Banking secrecy laws suspected to facilitate arms trafficking
  • Foreign actors dominate sector as part of larger transnational crimes

Illicit Flora and Fauna Markets

  • Minimal impact from illicit flora markets
  • No identified illegal fauna trading
  • Minimal scale poaching incidents in forests

Drugs

  • Domestic demand for drugs, especially cannabis, on the rise
  • No significant established market for heroin or cocaine
  • Cannabis is most commonly trafficked substance
  • Online purchases becoming increasingly popular

Cybercrime

  • 45% of businesses and institutions targeted
  • Ransomware, trojan horses, and other forms of malware common
  • Cyber-attacks becoming a growing area of concern

Financial Crimes

  • Country’s reputation as tax haven and secrecy jurisdiction attracts criminals
  • Significant increase in financial crimes in the past two years
  • Money laundering is a major concern
  • Organized criminal groups present, including ‘Ndrangheta

Collaboration Against Crime

  • Proactive stance against crime
  • Involved in various intelligence-sharing treaties and extradition agreements
  • Participates in international efforts to prevent crime

Maintaining Societal Integrity

  • Low tax rates and business-friendly environment attract legitimate business
  • Robust financial controls help to mitigate risks
  • Government invests in prevention measures and supports victims
  • Significant strides in banking reform
  • Strong commitment to the rule of law and societal integrity