Liechtenstein’s Efforts to Combat Money Laundering and Terrorist Financing
Introduction
The Financial Market Authority (FMA) of Liechtenstein has been working diligently to combat money laundering and terrorist financing. In this article, we will review the key points from a recent report by MONEYVAL, an anti-money laundering organization within the Council of Europe, on Liechtenstein’s compliance with international standards set by the Financial Action Task Force (FATF).
MONEYVAL Evaluation
In 2022, MONEYVAL conducted a comprehensive assessment of Liechtenstein’s compliance with FATF recommendations. The evaluation was part of the 5th round of evaluations conducted by MONEYVAL.
Key Findings
- Compliance ratings: Liechtenstein scored well in the assessment, demonstrating a broad and convergent understanding of money laundering and terrorist financing risks.
- Technical compliance: Liechtenstein was rated “compliant” or “largely compliant” for 37 out of 40 FATF recommendations related to laws, regulations, and guidelines setting out the legal framework for preventing money laundering and terrorist financing.
- Effectiveness: In five out of eleven subject areas examined, Liechtenstein scored above average in terms of effective implementation of the legal framework. The other areas were assessed as showing a moderate level of effectiveness.
Strengthening AML/CFT Supervision
MONEYVAL positively acknowledged the FMA’s risk-based supervision approach and its strengthening of AML/CFT supervisory strategy and organization in 2018.
Recommendations for Improvement
While Liechtenstein has made progress in improving measures to combat money laundering and terrorist financing, the report encourages the country to continue strengthening its efforts.
Conclusion
The MONEYVAL evaluation highlights the FMA’s commitment to combating money laundering and terrorist financing. By continuing to strengthen its efforts and implementing effective measures, Liechtenstein can maintain its strong reputation as a leader in anti-money laundering and counter-terrorist financing initiatives.