Title: Liechtenstein’s Crackdown on Money Laundering with 5AMLD Implementation

Adopting the New Money Laundering Regulations in Liechtenstein

On April 1, 2021, the Principality of Liechtenstein officially adopted the revised money laundering regulations mandated by the 5th European Union Anti-Money Laundering Directive (5AMLD). This significant update aims to strengthen the financial system against money laundering and terrorist financing.

Contact: Bettina Kern Phone: +423 236 73 73 Email: bettina.kern@fma-li.li

Background

The 5AMLD was published in the Official Journal of the European Union on June 19, 2018, and member states were required to implement these regulations by January 10, 2020.

In Liechtenstein, the legislation was integrated into:

1. The Law on Professional Due Diligence to Combat Money Laundering, Organized Crime and Terrorist Financing (Due Diligence Act - DDA)
2. The related Due Diligence Ordinance (DDO)
3. The Act on the Register of Beneficial Owners of Legal Entities (VwbPG)

Notable Changes with 5AMLD

Expansion of DDA Scope

The scope of the DDA has been expanded to include:

1. Real estate agents
2. Art dealers
3. Virtual asset service providers (VASPs)

VASPs are those who carry out exchanges between virtual currency and fiat, and providers of virtual currency wallets. In Liechtenstein, token issuers and trading platforms that do not meet the definition of VASP exchanges according to the Financial Action Task Force (FATF) are also subject to due diligence.

High-risk Third Countries

The 5AMLD harmonizes measures regarding high-risk third countries and specifies when and which measures must be applied to business relationships and transactions.

Register of Beneficial Owners of Legal Entities

The 5AMLD improved transparency by:

1. Expanding the requirements for operating central registers
2. Allowing wider access to this information
3. Introducing additional authorities with direct access

Regulated persons are obligated to consult this register before establishing business relationships.

Centralised bank account register

The 5AMLD requires members states to implement a centralised bank account register or retrieval system to identify account holders. In Liechtenstein, this will apply to:

1. All accounts held in Liechtenstein banks or investment firms identified by an IBAN
2. Safety deposit boxes

Implementation and Effective Enforcement

The Financial Market Authority (FMA) in Liechtenstein will continue working closely with local and international partners to ensure the effective implementation of these regulations.

Quote from FMA officials:

Philipp Röser, Deputy Head of the Anti-Money Laundering and DNFBP Division:

These measures are integral in our efforts to maintain a robust financial system and prevent unintended use. It’s vital that all those subject to the DDA are aware of these changes and adjust their practices accordingly.

Bettina Kern, Senior Legal Officer at the Anti-Money Laundering and DNFBP Division:

Liechtenstein is committed to combating money laundering and terrorist financing both domestically and internationally. The implementation of 5AMLD is a significant step forward.