Liechtenstein Banking Industry Subject to Strict Compliance Regulations

The Financial Market Authority (FMA) of Liechtenstein takes the safeguarding of investor confidence in the country’s monetary, securities, and credit system extremely seriously. To achieve this goal, the FMA exercises strict supervision over banks operating in the country.

Regulatory Framework

The FMA ensures compliance with various regulations, including:

• Banking Act
• Banking Ordinance
• Due Diligence Act
• Financial Market Authority Act
• Financial Conglomerates Act
• Payment Services Act

These regulations cover essential aspects such as bank liquidity and capital, risk distribution, and professional qualifications of senior executives to guarantee solid corporate management.

Enforcement and Dispute Resolution

In cases where violations of laws or other grievances are detected, the FMA takes swift action to restore order. If necessary, it collaborates with the Office of the Public Prosecutor. Additionally, the FMA encourages public involvement by accepting reports of unlicensed companies or other concerns.

A Conciliation Board plays a crucial role in resolving disputes between clients and financial institutions over services provided. The board’s mandate is to mediate and achieve agreement through an impartial and transparent process, governed by the Financial Services Conciliation Board Ordinance.

Independence and Objectivity

The Conciliation Board operates independently and without bias, with the goal of providing a fair and effective dispute resolution mechanism for all parties involved.

Conclusion

By adhering to these strict compliance regulations, Liechtenstein’s banking industry ensures investor protection and maintains public trust in its financial system. The country’s robust regulatory framework and dispute resolution mechanisms provide a safe and reliable environment for investors to operate in.