Financial Crime World

Liechtenstein Adopts Strict Know Your Customer (KYC) Regulations Amid International Sanctions

Implementation of UN Sanctions

The Principality of Liechtenstein has strengthened its anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations in line with international standards, specifically focusing on know your customer (KYC) requirements. This move is part of the country’s commitment to implementing United Nations (UN) sanctions and aligning itself with European Union (EU) policies.

What are UN Sanctions?

Liechtenstein has been a member of the UN since 1990 and is obligated under international law to enforce UN Security Council resolutions in the form of sanctions. These measures are non-military, targeting specific states, organizations, or individuals, and affect trade, services, payments, capital, and persons.

Participation in EU Sanctions

Liechtenstein participates in individual EU sanctions within the framework of autonomous enforcement. This cooperation is part of the country’s broader foreign policy priorities and regular alignment with EU policies through the political dialogue between the EU and EEA/EFTA states.

KYC Requirements

The Financial Intelligence Unit (FIU) plays a crucial role in enforcing AML/CFT regulations, including KYC requirements. The FIU provides guidance on implementing international sanctions and ensures that financial institutions comply with these regulations.

What are KYC Requirements?

Institutions must verify customer identities and maintain up-to-date records to prevent money laundering and terrorist financing.

Resources for Compliance

To support compliance with KYC regulations, the FIU offers a newsletter service providing updates on changes to applicable sanction lists. Additionally, the following resources are available:

Conclusion

Liechtenstein’s commitment to implementing strict KYC regulations demonstrates its dedication to combating money laundering and terrorist financing. By aligning itself with international standards, the country aims to maintain a secure financial system and prevent illicit activities. Financial institutions must comply with these regulations to ensure a safe and trustworthy environment for customers and investors alike.