Financial Crime World

Liechtenstein Banks Embrace Robust Compliance Framework

Comprehensive Rules for Adherence to Stringent Compliance Procedures

VADUZ, LIECHTENSTEIN - The Liechtenstein Bankers Association (LBA) has established a comprehensive set of rules to ensure adherence to stringent compliance procedures in the banking sector. Governed by its internal articles of association, the LBA’s framework is supplemented by a Code of Conduct and various regulations, guidelines, and recommendations.

Key Documents at the Heart of Regulatory Structure

Articles of Association

The Articles of Association outline the organisational structure and procedures of the LBA, providing a foundation for the regulatory framework.

Code of Conduct

The Code of Conduct sets out the guiding principles for member banks to follow in their daily operations, ensuring that they adhere to the highest standards of integrity and professionalism.

Guidelines Aimed at Mitigating Specific Risks

  • Guideline on Dealing with Risk-Increasing Factors Relating to Money Laundering: Designed to prevent and detect illicit financial transactions.
  • Regulations on Due Diligence Obligations of Banks in Dealing with Foreign Correspondent Banks: Ensuring proper vetting and monitoring of international relationships.
  • Guidelines on Infrastructure Services Provided by Banks: Including the secure storage and transmission of sensitive data.
  • Guideline on Basic Standards for the Assessment of Knowledge and Competence of Client Advisors of Banks: Guaranteeing that staff are adequately trained to handle customer interactions.
  • Guideline on Due Diligence Obligations of Banks with Regards to Their Customers’ Tax Compliance: Ensuring adherence to tax regulations and avoiding any potential non-compliance.

Guiding Principles for Public Affairs

The LBA prioritises transparency and cooperation in shaping policy, underscoring the importance of open communication and collaboration within the financial sector.

Data Protection

The association recognises the critical role data protection plays in safeguarding customer information and maintaining trust within the financial sector.