Liechtenstein Takes Decisive Step in Combating Money Laundering and Terrorism Financing
A Leader in International Financial Markets
In a bid to strengthen its anti-money laundering (AML) and combating the financing of terrorism (CFT) laws, Liechtenstein has taken a decisive step towards positioning itself as a leader in international financial markets. As a member of the European Economic Area (EEA), the country has implemented all EU AML/CFT provisions while also committing to the recommendations of the Financial Action Task Force (FATF).
A Whole-of-Government Approach
The country’s strategic approach to combating money laundering and terrorism financing is based on close cooperation between national authorities and financial market participants. This ensures a whole-of-government approach that prioritizes effective risk assessment and mitigation. In recent years, Liechtenstein has conducted in-depth information and data analysis to identify and understand the country’s risk exposure in National Risk Assessments (NRA).
Key Principles:
- Close cooperation between national authorities and financial market participants
- Effective risk assessment and mitigation
- Whole-of-government approach
A Global View of ML/FT Risks
The Liechtenstein financial center serves clients globally, offering a range of essential financial products and services in a small geographic area. While this can be a competitive advantage, it also presents challenges from an ML/FT risk perspective. To address these risks, Liechtenstein authorities take a global view, assessing and mitigating threats with international cooperation.
Key Benefits:
- A global view of ML/FT risks
- International cooperation to mitigate threats
Virtual Assets Regulation: A Milestone for Liechtenstein
A significant milestone for the country was the introduction of its comprehensive regulation and supervisory system regarding virtual assets (Blockchain Act) in 2020. This early regulation has enabled authorities to evaluate data and assess risks in this rapidly evolving field.
Key Features:
- Comprehensive regulation and supervision of virtual assets
- Early adoption of blockchain technology
A Commitment to Combating ML/FT
The Liechtenstein Government has adopted an AML/CFT strategy and action plan, prioritizing further intensification of cooperation, coordination, and exchange of information at national and international levels.
Key Objectives:
- Further intensification of cooperation
- Coordination and exchange of information
- Effective risk assessment and mitigation
International Cooperation: A Strategic Partnership
The country’s commitment to combating money laundering and terrorism financing is exemplified by its close cooperation with international counterparts, including the United States. This strategic partnership has enabled Liechtenstein authorities to share expertise and best practices in addressing emerging risks and threats.
Key Benefits:
- Close cooperation with international partners
- Sharing of expertise and best practices
Conclusion
By taking a proactive approach to AML/CFT laws, Liechtenstein aims to maintain its position as a secure and reliable financial hub in a rapidly changing global landscape. The country’s efforts serve as a model for other nations seeking to strengthen their anti-money laundering frameworks and protect against the financing of terrorism.