Title: Liechtenstein Takes the Lead in Fighting Financial Crimes: AML/CFT Trends and Innovations

Liechtenstein as a Leader in Combating Money Laundering and Terrorism Financing

Amidst the evolving global financial landscape, the principality of Liechtenstein stands out as a leader in combating Money Laundering (ML) and Terrorism Financing (FT). Liechtenstein’s commitment to implementing stringent international standards is a testament to its reputation and risk minimization.

International Commitments and Memberships

EEA Member and EU AML/CFT Provisions

As a member of the European Economic Area (EEA), Liechtenstein conforms to all EU Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) provisions.

MONEYVAL Member

Beyond its EEA membership, Liechtenstein is also an active member of MONEYVAL, the Council of Europe’s Committee of Experts on AML/CFT measures. By promising to follow MONEYVAL’s recommendations, Liechtenstein further strengthens its commitment to adhering to international best practices.

Whole-Government Approach

Liechtenstein’s multifaceted strategy for preventing ML/FT ensures that FATF and EU requirements are met and addresses issues uniquely. The effective combat against financial crimes is the foundation of Liechtenstein’s financial sector.

Risk Assessment

Extensive Research and Data Analysis

Assessing ML/FT risks is a crucial aspect of a successful AML/CFT regime. In recent years, Liechtenstein authorities have engaged in extensive research and data analysis, basing their National Risk Assessments (NRAs) on solid evidence.

Blockchain Act and Digital Asset Market Evolution

In 2020, Liechtenstein introduced a comprehensive regulatory framework and oversight system for virtual assets or the “Blockchain Act.” This progressive legislation guarantees due diligence practices in the token economy, providing valuable information for NRAs.

Strengthening AML/CFT Measures

Strategic Action Plan

The fruitful outcomes of these NRAs enable Liechtenstein to fortify its AML/CFT measures. In response, the Liechtenstein government adopted a strategic action plan to strengthen its stance against financial crimes.

International Cooperation

Enhancing international cooperation, coordination, and information exchange are high priorities for Liechtenstein. Strategic partnerships with counterparts like FinCEN, Office of Foreign Asset Controls, Department of Justice, and the Securities and Exchange Commission in the US contribute to this ongoing collaboration.

By sharing knowledge and best practices, Liechtenstein bolsters its AML/CFT framework and protects itself and its customers from the evolving ML/FT landscape.