Financial Crime World

Title: Liechtenstein Financial Market Authority: Tackling Violations and Strengthening Regulations

Overview

The Financial Market Authority (FMA) of Liechtenstein has stepped up its regulatory initiatives, addressing violations and strengthening financial market regulations to ensure stability in the sector. Let’s explore the key actions taken by the FMA, as detailed in their recent Economic Report 2023.

FMA’s Enforcement Actions and Fines

  • The FMA opened 88 administrative proceedings or administrative criminal proceedings during the reporting period.
  • 192 ongoing proceedings or preliminary investigations were concluded.
  • The FMA imposed fines totaling CHF 1,489,500 for violations of banking law, market manipulation, insider trading, and transactions involving clone companies.
  • The largest fine, amounting to CHF 500,000, was imposed on a legal entity for undisclosed transgressions.

Criminal Complaints Filed

  • Nine criminal complaints were submitted to the responsible public prosecutor’s office.
  • The complaints were due to suspected market abuse, accepting deposits without authorization, insider trading and unlawful disclosure of insider information, concealment of material facts, fraud in connection with a clone company, violation of trademark protection, and activity without registration, in accordance with the Token and Trusted Technology Service Provider Act (TVTG).

FMA’s Role in Regulation and Development

  • The FMA is currently working on the government’s behalf to further develop financial market regulations.
  • New regulations in areas such as securities trading, digitalization, and crypto-currency trading are being drawn up.
  • A revised version of the Financial Market Act is scheduled to be finalized by January 1, 2025.

Conclusion

Despite international challenges facing the financial sector in Liechtenstein, the robust efforts of the Financial Market Authority have ensured its stability and protection for investors. With vigorous enforcement actions and regulatory developments, the FMA remains committed to upholding regulatory standards.