Financial Crime World

Financial Crime on the Rise in Liechtenstein: A Look at Anti-Money Laundering and Terrorist Financing Efforts

Liechtenstein has made significant strides in combating money laundering and terrorist financing since its last mutual evaluation, but challenges remain. In this report, we examine the current state of anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts in Liechtenstein, highlighting areas of progress and concern.

Progress in Combating Financial Crime

Liechtenstein’s legal framework is now more aligned with Financial Action Task Force recommendations, and a robust institutional framework has been established to combat these crimes. The country’s use of an in rem regime for confiscating criminal proceeds has proven effective in disrupting and dismantling organized crime networks.

Key Areas of Progress

  • Alignment with FATF Recommendations: Liechtenstein’s legal framework is now more aligned with Financial Action Task Force recommendations.
  • Robust Institutional Framework: A robust institutional framework has been established to combat financial crimes.
  • In Rem Regime for Confiscating Criminal Proceeds: The use of an in rem regime for confiscating criminal proceeds has proven effective in disrupting and dismantling organized crime networks.

Challenges Remain

Despite these advances, the fight against financial crime in Liechtenstein remains a complex challenge. Effective implementation of AML/CFT measures remains uneven, with some areas not meeting optimal standards. Domestic cooperation between stakeholders in the financial and non-financial sectors is strong, but more work needs to be done to ensure consistency across all aspects of AML/CFT efforts.

Key Areas of Concern

  • Uneven Implementation: Effective implementation of AML/CFT measures remains uneven.
  • Consistency Across Sectors: More work needs to be done to ensure consistency across all aspects of AML/CFT efforts.
  • Domestic Cooperation: Domestic cooperation between stakeholders in the financial and non-financial sectors is strong, but more work is needed.

Recommendations for Improvement

Our analysis provides insights into the country’s ongoing efforts to combat financial crime and suggests ways forward for improving its AML/CFT framework. We recommend that Liechtenstein:

  • Address Implementation Gaps: Address the implementation gaps that persist in the AML/CFT framework.
  • Maintain Trust of Key Stakeholders: Maintain the trust of key stakeholders by ensuring consistency across all aspects of AML/CFT efforts.
  • Enhance Legal Support for Revenue Administration: Enhance legal support for revenue administration to strengthen the effectiveness of AML/CFT efforts.