Liechtenstein’s Financial Market Authority Cracks Down on Non-Compliance in Payment Institutions
Enhanced Supervision by FMA’s Banking Supervision Section
The Banking Supervision Section of Liechtenstein’s Financial Market Authority (FMA) is taking a more stringent approach to ensuring that payment institutions in the country adhere to all relevant legal norms. This intensified effort involves regular reviews of submitted documents and reports from payment institutions, as well as direct communication with their boards of directors and management.
Auditing and Compliance Reviews
The FMA relies heavily on audit reports prepared by external auditors to monitor compliance with legal requirements. However, if necessary, the authority may also conduct its own audits or accompany external audits. If any violations of legal norms or grievances come to light during these reviews, the FMA will take swift action to restore a lawful state of affairs.
Key Aspects of Auditing and Compliance Reviews:
- Rely on audit reports from external auditors
- Conduct internal audits or accompany external audits as necessary
- Take swift action against non-compliance
Measures to Enforce Compliance
In order to fulfill its responsibilities, the FMA has the power to demand that payment institutions and their auditors provide all necessary information and documents. The authority may also order or conduct extraordinary audits if deemed necessary. In cases where non-compliance is found, the FMA may issue decisions, decrees, or warnings to the relevant parties.
Enforcement Measures:
- Demand information and documents from payment institutions and their auditors
- Order or conduct extraordinary audits as necessary
- Issue decisions, decrees, or warnings for non-compliance
Consequences of Non-Compliance
If payment institutions fail to comply with these measures after being warned, the FMA may publish final decisions and decrees publicly. This move is aimed at deterring other payment institutions from engaging in similar non-compliant behavior.
Consequences:
- Public publication of final decisions and decrees
- Deterrent effect on other payment institutions