Financial Crime World

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Financial Crime Definition in Liechtenstein Faces Improvement Call

The latest evaluation report by MONEYVAL has identified areas for improvement in Liechtenstein’s fight against financial crime.

Effectiveness in Preventing and Combating Money Laundering and Terrorism Financing

While MONEYVAL praises Liechtenstein for its significant strides in understanding money laundering (ML) and terrorism financing (TF) risks, setting national anti-money laundering and counter-terrorism financing policies, and using financial intelligence, the report highlights a substantial level of effectiveness in preventing and combating ML/TF.

Recommendations for Improvement

However, MONEYVAL suggests that Liechtenstein still needs to improve its supervision, particularly with regards to the private sector’s application of AML/CFT measures. The report also notes:

  • Lack of transparency in beneficial ownership information for legal persons and arrangements
  • Insufficient investigation and prosecution of money laundering cases
  • Some exemptions from anti-money laundering regulations are not supported by country risk assessments

Financial Intelligence Unit (FIU)

The FIU in Liechtenstein is recognized as an important source of financial information, producing comprehensive strategic analysis reports. MONEYVAL recommends further reports on TF and the laundering of proceeds from foreign tax crimes.

Prosecution and Confiscation

In terms of prosecution, the report notes that convictions for all types of ML have been secured, but that sanctions imposed are not sufficiently dissuasive or proportionate. Confiscation of crime proceeds is pursued as a policy objective in Liechtenstein, with assets seized and confiscated generally aligning with the country’s risk profile.

Non-Profit Organizations (NPOs)

NPOs operating in Liechtenstein showed good awareness of ML/TF risks, but those operating as associations lacked understanding of their obligations under CFT measures and the risk of TF misuse. Banks and large trust and company service providers have demonstrated a good understanding of ML/TF risks, applying effective measures to mitigate them.

Conclusion

Overall, MONEYVAL’s report concludes that while Liechtenstein has made significant progress in preventing and combating financial crime, there is still room for improvement, particularly with regards to supervision, transparency, and prosecution.