Emerging Risks in Financial Crime Prevention in Liechtenstein Pose Challenge for Authorities

Overview

Liechtenstein has made significant strides in combating money laundering and terrorist financing, but a new report highlights emerging risks that threaten the country’s progress. The Organisation for Economic Co-operation and Development (OECD) released a Technical Note yesterday, which found that while Liechtenstein has brought its legal framework more closely in line with Financial Action Task Force (FATF) recommendations, effective implementation is uneven and not always optimal.

Key Findings

• Domestic cooperation between key stakeholders is robust.
• The lack of transparency in certain areas poses a significant risk to preventing financial crime.
• Liechtenstein’s proactive use of the in rem regime of confiscation of criminal proceeds has proven to be effective, but there are still concerns about the country’s ability to prevent financial crime.

Emerging Risks

The OECD report highlights several emerging risks that pose challenges for authorities:

• Increasing use of virtual currencies: The increasing use of virtual currencies and the potential for terrorist financing through non-traditional channels.
• Need for greater international cooperation and information sharing: Liechtenstein is not an island, it’s part of the global financial system, and it needs to work with other countries to stay ahead of emerging risks.

Response from Authorities

The Liechtenstein government has acknowledged the concerns raised by the OECD report and has committed to addressing them. “We take these concerns seriously and are committed to addressing them,” said a spokesperson for the Liechtenstein government. “We will continue to work closely with our partners, both domestically and internationally, to ensure that we have robust systems in place to prevent financial crime.”

Conclusion

The fight against financial crime is an ongoing one, and it requires continuous effort and cooperation from all stakeholders. As the global financial landscape continues to evolve, countries like Liechtenstein must stay vigilant and adapt their strategies to address new threats.

Recommendations

• Increase transparency in certain areas to prevent financial crime.
• Enhance international cooperation and information sharing to combat global financial threats.
• Stay up-to-date with emerging risks and adapt strategies to address them.