Liechtenstein’s Compliance with Anti-Money Laundering and Counter-Terrorism Financing Regulations

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Progress Made by Liechtenstein

Liechtenstein has made notable progress in certain areas related to anti-money laundering (AML) and counter-terrorism financing (CFT) regulations. These advancements include:

AML Investigations

• The judiciary has achieved convictions for all types of money laundering (ML) cases, including self-laundering and third-party laundering.
• Strong inter-institutional cooperation exists throughout the seizure/confiscation proceedings.

Asset Confiscation

• Competent authorities are actively pursuing asset confiscation, with both conviction- and non-conviction-based confiscation being applied frequently in practice.

Areas for Improvement in Liechtenstein’s AML/CFT Framework

While progress has been made, there are still areas where Liechtenstein needs to improve its AML/CFT framework. These weaknesses include:

Sanctions Proportionality

• Sanctions imposed by Liechtenstein courts for ML offenses are not proportionate and dissuasive.

Terrorist Financing Prosecutions/Convictions

• There have been no TF prosecutions or convictions in Liechtenstein so far, despite a medium risk assessment.

Counter-Terrorism Strategy

• The country has not developed a specific counter-terrorism related strategy.

Conclusion

In conclusion, while Liechtenstein has made progress in certain areas related to AML/CFT regulations, it still needs to address these weaknesses to improve its overall framework.