Financial Crime World

Cybersecurity Threats to Financial Institutions in Liechtenstein on the Rise

Strengthening Defenses Against Online Attacks

VADUZ, LIECHTENSTEIN - In response to growing concerns over cybersecurity threats, the government of Liechtenstein is taking significant steps to strengthen its defenses against online attacks and maintain the integrity of its financial system.

According to experts, the past year has seen a notable surge in cyber-related risks facing Liechtenstein’s financial sector. To address this issue, the country established its Cybersecurity Unit in 2021, which serves as the central point of contact for all matters related to cybersecurity.

Key Measures to Counter Cyber Threats

  • The introduction of the Cybersecurity Act in 2023 has provided a robust legal framework that enables more effective measures to be taken against online attacks, particularly those targeting financial institutions.
  • Liechtenstein’s financial sector remains committed to upholding international standards and best practices in combating money laundering and terrorist financing.

Enhanced Cooperation Against Financial Crimes

A key player in this initiative is the Arbeitsgruppe PROTEGE, a permanent national working group established in 2013. This group coordinates activities related to strengthening Liechtenstein’s defenses against financial crimes and regularly updates action plans to respond to evolving risks.

Recent Legislative Developments

Recent legislative developments have also enhanced Liechtenstein’s asset tracing and recovery mechanisms. The government approved amendments to the EEA Reference Values Implementation Act (EWR-RWDG) and the Insurance Supervision Act (VersAG) on July 9, 2024. These reforms align with European Union’s reforms of the European System of Financial Supervision (ESFS), aimed at enhancing recognition and supervision of administrators from third countries and strengthening information exchange among EEA supervisory authorities.

Conclusion

In summary, Liechtenstein is taking proactive measures to address cybersecurity threats and maintain its reputation as a transparent and resilient financial hub. The country’s commitment to international cooperation, legislative reforms, and enhanced cybersecurity measures will continue to strengthen its defenses against online attacks and ensure the integrity of its financial system.