Liechtenstein Banks Tackle Regulatory Challenges

Efforts to Bolster Trust in the Financial Sector

In a move to strengthen trust in the financial sector, Liechtenstein’s banking industry is tightening its regulatory reins. At the heart of this effort lies the Liechtenstein Bankers Association (LBA), which has established a comprehensive set of rules governing banking practices.

Foundational Documents

The LBA’s articles of association form the foundation of these regulations, outlining the organization’s structure and procedures. However, it is through the Code of Conduct, along with various guidelines and recommendations, that the LBA supplements its core framework to create a clear and consistent regulatory environment.

Key Regulatory Documents:

• Articles of Association: The foundational rules governing the LBA’s organizational structure and procedures.
• Code of Conduct: A cornerstone of the LBA’s regulatory framework, outlining ethical standards for banking professionals.
• Guidelines on Money Laundering: Rules aimed at mitigating the risk of money laundering in the financial sector.
• Due Diligence Obligations: Guidelines ensuring banks maintain rigorous due diligence processes when dealing with foreign correspondent banks and assessing customer tax compliance.
• Infrastructure Services: Standards for banking infrastructure services, including requirements for basic standards in client advisor knowledge and competence assessments.

Additional Initiatives

The LBA has also established guiding principles for:

• Public affairs initiatives to promote transparency and accountability within the financial sector.
• Data protection efforts to safeguard customer information and maintain trust in the industry.