Financial Crime World

LIECHTENSTEIN ENHANCES TRANSPARENCY WITH NEW BENEFICIAL OWNERSHIP DISCLOSURE RULES

The Principality of Liechtenstein has taken a significant step to combat money laundering and terrorism financing by introducing new rules requiring companies and trusts to disclose their beneficial ownership information. This move aims to improve transparency and accountability in the country’s financial sector.

KEY FEATURES OF THE NEW RULES

  • Registration: All domestic legal persons, partnerships, and trusts must register with the Office of Justice within 30 days of their formation or registration in the Liechtenstein commercial register.
  • Foreign trusts: Foreign trusts that are managed in Liechtenstein or have established a business relationship with a person subject to due diligence must also register within 30 days.
  • Access to information: Beneficial ownership information can only be accessed by the Office of Justice, competent authorities, and certain third parties who submit a written application and provide identification documents.

ENHANCED TRANSPARENCY AND ACCOUNTABILITY

The new rules aim to improve transparency and accountability in Liechtenstein’s financial sector. By requiring companies and trusts to disclose their beneficial ownership information, the government can better track suspicious transactions and prevent money laundering and terrorism financing.

Benefits of Enhanced Transparency

  • Improved risk management: With access to accurate beneficial ownership information, banks and other financial institutions can make informed decisions about high-risk customers.
  • Increased cooperation: The new rules facilitate cooperation between Liechtenstein and other countries in combating financial crime.
  • Enhanced reputation: By demonstrating its commitment to transparency and accountability, Liechtenstein can enhance its reputation as a responsible and reliable financial center.

IMPLEMENTATION AND ENFORCEMENT

The Register of the Beneficial Owners of Legal Entities has been operational since April 1, 2021. The Office of Justice is responsible for maintaining the register and ensuring compliance with the new rules. Failure to disclose beneficial ownership information or providing inaccurate information can result in penalties and fines.

LIECHTENSTEIN JOINS GLOBAL EFFORTS TO COMBAT FINANCIAL CRIME

The introduction of these new rules demonstrates Liechtenstein’s commitment to combating financial crime and promoting transparency in its financial sector. The country joins a growing number of jurisdictions that have implemented similar measures to prevent money laundering and terrorism financing.

International Cooperation

  • Global standards: Liechtenstein’s new rules align with international standards for beneficial ownership disclosure, such as those set by the Financial Action Task Force (FATF).
  • Regional cooperation: The country is also cooperating with neighboring jurisdictions to combat financial crime and promote transparency in the region.
  • Act on the Register of the Beneficial Owners of Legal Entities (VwbPG)
  • Ordinance on the Register of the Beneficial Owners of Legal Entities (VwbPV)

These rules are a significant step towards enhancing transparency and accountability in Liechtenstein’s financial sector. By promoting cooperation, improving risk management, and increasing public trust, the country can strengthen its position as a responsible and reliable financial center.