LIECHTENSTEIN BANKING INDUSTRY RESPONDS TO FINANCIAL CRIME: A LOOK AT THE CHANGING LANDSCAPE
A Shift Away from Bank Secrecy Laws
Vaduz, Liechtenstein - In a bid to curb financial crime and maintain transparency, Liechtenstein’s banking industry has undergone significant changes in recent years. The tiny European microstate has long been known for its bank secrecy laws, but today it is taking steps to become compliant with increasingly stringent EU and US government guidelines.
No Longer a Haven for Financial Secrecy
According to sources within the Liechtenstein banking sector, the country’s banks are no longer operating under the same model as they once did. Gone are the days of total financial opacity; instead, banks in Liechtenstein are now required to disclose account holders’ information to foreign governments.
Implications for US Citizens Seeking to Bank in Liechtenstein
This shift has significant implications for US citizens seeking to bank in Liechtenstein. As a result, it is no longer advisable for American individuals or companies to attempt to establish accounts with Liechtenstein-based institutions.
Changes in the Banking Industry
“We’re seeing a change in the way our banks operate,” explained a senior banking official on condition of anonymity. “We used to be known as a haven for financial secrecy, but that’s no longer the case.”
Foundation Structures: An Alternative Approach to Asset Protection
For those seeking to protect their assets, Liechtenstein offers an alternative structure: foundations. Unlike trusts, which are typically used in common law countries like the UK or the US, foundations are a staple of civil law jurisdictions such as France and Germany.
- Benefits of Foundations:
- Relative low initial investment of 30,000 Swiss francs (approximately $31,000 USD)
- Attractive option for high-net-worth individuals seeking to protect their wealth
- Challenges of Foundations:
- Process can be costly compared to some other European jurisdictions
Immigration and Citizenship: A Challenging Process
For those seeking to move to Liechtenstein, the picture is bleaker still. The country has a very low immigration rate, with only approximately 28 EU nationals allowed to obtain a work permit each year.
- Obtaining Citizenship:
- Requires at least 30 years of continuous residence
- Can be expedited through marriage to a citizen
- Dual citizenship is not permitted
- Applicants will need to demonstrate proficiency in German language skills
Conclusion: Liechtenstein’s Banking Industry and Asset Protection Opportunities
In conclusion, while Liechtenstein’s banking industry may have adapted to the changing landscape of financial crime regulations, the country remains a challenging place for those seeking asset protection or immigration opportunities.