Liechtenstein Takes Enforcement of Financial Crime Regulations Seriously

The Principality of Liechtenstein has demonstrated a strong commitment to combating financial crime and terrorism financing, reflecting its adherence to international regulations.

Compliance with Global Standards

At the heart of this effort is the Liechtenstein Bankers Association (LBA), which prioritizes the swift implementation of global standards within domestic law. The LBA adheres to several key benchmarks for compliance efforts:

• 40+9 Recommendations of the Financial Action Task Force (FATF): This set of recommendations outlines best practices for combating money laundering and terrorist financing.
• European Union Directives and Regulations: Liechtenstein complies with EU directives, including the 5th EU Anti-Money Laundering Directive, which was revised in June 2018.

Domestic Enforcement

Liechtenstein enforces international standards through the Due Diligence Act and Due Diligence Ordinance. These legislative tools are continually updated to align with evolving global AML/CFT requirements.

Key Features of Domestic Enforcement:

• Due Diligence Act: This act requires financial institutions to conduct thorough due diligence on clients and transactions.
• Due Diligence Ordinance: This ordinance outlines specific requirements for due diligence, including verification of client identity and monitoring of suspicious transactions.

International Cooperation

Liechtenstein is a member of MONEYVAL, which conducts assessments in partnership with the International Monetary Fund to gauge compliance. In its most recent evaluation, MONEYVAL found Liechtenstein to be meeting high standards for combating financial crime and terrorism financing. This achievement underscores the nation’s commitment to regulatory enforcement actions within the realm of financial crime.