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Liechtenstein Prioritizes Anti-Money Laundering Measures Amid Global Standards

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The principality of Liechtenstein has taken significant steps to bolster anti-money laundering (AML) measures and compliance, aligning itself with international standards set by the Financial Action Task Force (FATF). As a member state of the European Economic Area, Liechtenstein regularly implements European Union directives on money laundering into national law.

Key Requirements for Private Banking and Wealth Management

In order to prevent money laundering, banks, investment firms, asset managers, and trust service providers in Liechtenstein are subject to due diligence requirements under the Due Diligence Act. These requirements include:

  • Identifying and Verifying Client Identity: Financial intermediaries must identify and verify the identity of clients and beneficial owners.
  • Establishing a Business Profile: A business profile that includes information on economic background and origin of assets deposited must be established for each client.
  • Risk-Adequate Monitoring of Business Relationships: Risk-adequate monitoring of business relationships must be implemented to prevent potential money laundering.

Politically Exposed Persons (PEPs) Face Increased Scrutiny

Politically exposed persons are natural persons who hold prominent public functions, including heads of state, government ministers, parliament members, judges, ambassadors, and high-ranking officers in the armed forces. Financial intermediaries must establish additional measures to determine whether a client or beneficial owner is a PEP, obtaining approval from at least one member of the management before establishing a business relationship.

Documentation Requirements for Account Opening

Private individuals and legal entities are required to provide specific information when opening an account:

  • Private Individuals:
    • Full name
    • Date of birth
    • Address
    • Citizenship
    • Tax Identification Number (TIN)
  • Legal Entities:
    • Name or firm
    • Type of legal entity
    • Registered office
    • Date of establishment
    • TIN

Additional information may be required on a case-by-case basis.

Tax Offenses as Predicate Offenses for Money Laundering

Tax offenses are predicate offenses for money laundering in Liechtenstein. Acts punishable by more than one year of imprisonment qualify as predicate offenses.

Compliance Verification and Liability

Financial intermediaries must verify tax compliance of clients through internal directives or external measures. Failure to comply with due diligence measures can result in criminal prosecution, administrative procedures, or civil liability.