Financial Crime World

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BANKING REGULATORS IN LIECHTENSTEIN ENSURE STRONG CLIENT PROTECTION MEASURES

Regulators in Liechtenstein are doubling down on efforts to safeguard investor confidence in the country’s financial system, implementing a robust framework of compliance procedures that protect both clients and creditors.

The Financial Market Authority (FMA)

At the heart of these measures is the Financial Market Authority (FMA), which is responsible for supervising banks and their branches across the principality. The FMA’s primary objective is to ensure that licensed financial institutions adhere to applicable laws and regulations, including key pieces of legislation such as:

  • Banking Act
  • Due Diligence Act
  • Payment Services Act

Supervisory Measures

To achieve this goal, the FMA conducts continuous monitoring of a bank’s:

  • Liquidity
  • Capital base
  • Risk management practices

The regulatory body also scrutinizes the professional qualifications of its board members and senior management. Additionally, the FMA maintains close ties with the Office of the Public Prosecutor, ensuring swift action is taken when any irregularities are detected.

Public Input and Reporting

Meanwhile, the FMA welcomes public input and encourages citizens to report any unlicensed companies or suspicious activity to their authorities. This proactive approach serves as a critical component in maintaining trust within Liechtenstein’s financial sector.

The Conciliation Board

In addition to its supervisory role, the FMA also oversees the Conciliation Board, an independent body tasked with resolving disputes between clients and financial institutions. The board operates under the auspices of the Financial Services Conciliation Board Ordinance (FSCBO), which outlines its organizational structure, powers, and procedures.

Prioritizing Client Protection

By prioritizing transparency, impartiality, and independence, Liechtenstein’s regulators are building a reputation as champions of robust client protection measures – crucial for maintaining investor confidence in the country’s financial system.