Liechtenstein Falls Short on Compliance with Financial Regulations, FATF Report Reveals

Introduction

The Financial Action Task Force (FATF) has recently conducted an evaluation of Liechtenstein’s compliance with international financial regulations. The assessment, which was based on information provided by the country and an on-site visit to the nation, has been endorsed by the FATF.

Shortcomings in Compliance

According to the report, Liechtenstein failed to meet several key standards related to anti-money laundering (AML) and combating the financing of terrorism (CFT). The shortcomings include:

• Inadequate measures to prevent shell companies from being used for illicit activities
• Insufficient oversight of financial institutions

Concerns and Recommendations

The findings highlight a range of concerns, including:

• Failure to implement effective measures to prevent the misuse of shell companies
• Lack of transparency in the ownership and control structures of companies
• Inadequate supervision and monitoring of financial institutions

To address these shortcomings, the FATF recommends that Liechtenstein:

• Strengthen its anti-money laundering and combating the financing of terrorism regime
• Improve transparency in company ownership and control structures
• Enhance supervision and monitoring of financial institutions
• Implement effective measures to prevent the misuse of shell companies