Financial Crime World

Assessing Liechtenstein’s Efforts Against Organized Crime

Key Findings

Liechtenstein has demonstrated significant efforts in combating organized crime, with notable strengths in its judicial system, law enforcement, international cooperation, border control, and economic environment.

  • Effective Judicial System: Liechtenstein’s judicial system is efficient, transparent, and capable of investigating and prosecuting criminal cases.
  • Strong Law Enforcement: The country has a dedicated national police force with specialized units focused on corruption and money laundering.
  • Cooperation with International Agencies: Liechtenstein cooperates actively with INTERPOL and other international organizations to combat organized crime.
  • Border Control: The country’s borders are resilient due to cooperation with Austria and Switzerland on border control.
  • Economic and Financial Environment: Liechtenstein is a leading offshore tax haven, but the government has made efforts to increase banking transparency and combat money laundering.

Challenges

Despite these strengths, Liechtenstein faces challenges that hinder its progress in combating organized crime:

  • Money Laundering Concerns: Despite efforts to improve banking transparency, Liechtenstein remains an important tax shelter for illicit funds.
  • Financial Secrecy: The country’s financial secrecy laws can hinder information exchange and cooperation with other countries.
  • Low Tax Rates: Liechtenstein’s low tax rates attract business and investment but also contribute to its reputation as a haven for organized crime.

Recommendations

To further strengthen its efforts against organized crime, we recommend:

  1. Continuing Anti-Money Laundering Measures: Enhance banking transparency and strengthen anti-money laundering regulations.
  2. Improving Information Exchange: Enhance information exchange with other countries to combat money laundering.
  3. Raising Public Awareness: Promote public awareness about the risks of organized crime and financial secrecy.
  4. Supporting Civil Society Groups: Support civil society groups in their efforts to prevent corruption and promote transparency.

Conclusion

Overall, Liechtenstein has made significant progress in combating organized crime, but there is still work to be done to ensure the country’s reputation as a safe haven for legitimate business and investment is maintained. By addressing these challenges and implementing our recommendations, Liechtenstein can continue to strengthen its efforts against organized crime.