Financial Crime World

Financial Crimes Definition Takes Center Stage in Liechtenstein

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Liechtenstein has been at the forefront of efforts to combat financial crimes, implementing stringent anti-money laundering (AML) and combating the financing of terrorism (CFT) measures. The country’s commitment to AML/CFT has earned it a reputation as a global leader in this area.

Zero-Tolerance Policy

At the heart of Liechtenstein’s approach is its zero-tolerance policy towards financial crimes. To achieve this, the country has implemented a range of regulations and guidelines, including:

  • The Law on Professional Due Diligence for the Prevention of Money Laundering, Organised Crime and Financing of Terrorism (Due Diligence Act)
  • The Ordinance on Professional Due Diligence for the Prevention of Money Laundering, Organised Crime and Financing of Terrorism (Due Diligence Ordinance)

Regulatory Oversight

The Financial Market Authority (FMA) plays a crucial role in monitoring compliance with these regulations and imposing sanctions where necessary. The FMA:

  • Evaluates information from the SPG reporting system
  • Conducts on-site inspections
  • Follows up on reports of suspicious activity

Due Diligence Obligations

Financial institutions, trust service providers, and designated non-financial businesses and professions (DNFBPs) are subject to due diligence obligations under the Due Diligence Act. These requirements include:

  • Identifying and verifying clients
  • Identifying and verifying beneficial owners
  • Verifying sources of funds and wealth
  • Monitoring transactions
  • Reporting suspicious activity

Financial Intelligence Unit

The Financial Intelligence Unit (FIU) is responsible for receiving and analyzing reports of suspicion from financial institutions and public authorities. The FIU also analyzes:

  • General threats of money laundering
  • Predicate offenses of money laundering
  • Financing of terrorism

International Recognition

Liechtenstein’s AML/CFT framework has been recognized by international bodies, including the Financial Action Task Force (FATF) and MONEYVAL. In its latest report, MONEYVAL praised Liechtenstein for its strong supervisory approach and broad understanding of money laundering and terrorist financing risks.

Cooperation with European Authorities

The country’s commitment to AML/CFT is also reflected in its cooperation with European authorities. As an EEA member, Liechtenstein participates in the work of:

  • The European Banking Authority (EBA)
  • The Anti-Money Laundering CFT Standing Committee (AMLSC)