Liechtenstein’s Efforts Against Transnational Organized Crime

Overview

The Principality of Liechtenstein is a small European country nestled between Switzerland and Austria. In recent years, Liechtenstein has made significant strides in addressing transnational organized crime, with a strong stance against such activities. This report assesses the country’s performance in six key areas: leadership and governance, criminal justice and security, economic and financial environment, civil society and social protection, institutional framework and coordination, and response to COVID-19.

Key Findings

Effective Governance and International Cooperation

Liechtenstein has a transparent government that publishes budgets and procurement contracts. The country actively participates in international cooperation efforts led by the UN and Europol, demonstrating its commitment to combating transnational organized crime.

Efficient Judicial System

Despite some limitations, Liechtenstein’s judicial system is efficient and effective in investigating and prosecuting criminal cases. However, due to lack of capacity, individuals with sentences over two years are imprisoned in Austria.

Robust Law Enforcement and Border Control

The national police has specialized units focused on corruption and money laundering. INTERPOL also has a National Central Bureau in Vaduz, which plays a key role in safeguarding regional security. Liechtenstein cooperates well with Austria and Switzerland on border control, making its borders resilient.

Effective Prevention Measures and Financial Transparency

The government has implemented strategies to prevent corruption, including early education campaigns, drug-use prevention programs, and a working group to prevent corruption. Liechtenstein has also made efforts to increase banking transparency, with a special analytics unit to detect money laundering and participation in European anti-money laundering measures.

Multi-Stakeholder Project Against Slavery and Trafficking

The country recently launched the Finance Against Slavery and Trafficking project to undermine the capture and abuse of global financial flows by organized crime actors.

Concerns Remaining

Despite progress, there are still areas that require attention:

• Tax Haven Status: Liechtenstein is still considered an important tax shelter and haven for the proceeds of illegal activities.
• Financial Secrecy: Financial secrecy can impact the exchange of information, making it difficult to combat money laundering.
• Limited Media Environment: The media environment in Liechtenstein is limited, with only two main media groups owned by leading political parties and no state financial aid for quality media.

Conclusion

Overall, while Liechtenstein has made significant progress in addressing transnational organized crime, there are still areas that require attention to further strengthen its efforts. By continuing to implement effective strategies and addressing concerns, the country can maintain its strong stance against organized crime and ensure a safer future for its citizens and the region.