Financial Crime World

Title: Liechtenstein Banks Leading the Charge in Financial Crime Deterrence: Compliance with International Standards

Proactive Approach to AML/CFT Regulations by Liechtenstein Banks

Amidst rising concerns over money laundering and terrorist financing (ML/TF), Liechtenstein banks are taking a leading role in upholding strict anti-money laundering and countering the financing of terrorism (AML/CFT) regulations. The Liechtenstein Bankers Association (LBA) is spearheading these efforts, championing the swift implementation of international standards and requirements.

Incorporating International Guidelines and Regulations

The LBA’s commitment to these measures is evident in their efforts to adopt the latest international guidelines and regulations. Notable among these are the 40 + 9 Recommendations of the Financial Action Task Force (FATF):

  • FATF Recommendations: The financial action task force is an international organization that develops and promotes policies to combat ML/TF. Liechtenstein’s adherence to these recommendations is crucial to maintaining a robust AML/CFT framework.

Furthermore, the European Union (EU) level regulations, such as the 4th and 5th EU Anti-Money Laundering Directives and the EU Funds Transfer Regulation, are being integrated into domestic law:

  • EU Anti-Money Laundering Directives: These directives set minimum standards for EU countries to prevent ML/TF. Compliance with these directives is essential for Liechtenstein’s banks to ensure they remain competitive in the European financial landscape.

Domestic Transposition of International AML Requirements

These international AML requirements are being domestically transposed through the following legislative framework:

  • Due Diligence Act: This act sets out the general duties that Liechtenstein financial intermediaries must comply with when identifying and reporting suspicious transactions related to ML/TF.
  • Due Diligence Ordinance: This ordinance outlines detailed reporting and record-keeping procedures that financial intermediaries must follow when suspecting ML/TF.

Regular Review and Updates

This legislative framework is regularly reviewed and updated to adapt to evolving international developments. Adherence to these regulations is not only essential for maintaining Liechtenstein’s reputation as a trusted financial hub, but also for maintaining its MONEYVAL membership and approval from international organizations.

Beyond Borders: MONEYVAL Membership and Assessments

Liechtenstein’s vigilance in combating financial crimes goes beyond its borders. The country is an active member of MONEYVAL, the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism. In collaboration with the International Monetary Fund (IMF), MONEYVAL conducts periodic assessments of Liechtenstein’s adherence to international AML/CFT standards:

  • MONEYVAL Evaluations: The most recent evaluation commended Liechtenstein for maintaining high compliance standards, with a strong focus on continual improvement and adaptation to new threats.