Financial Crime World

Title: Liechtenstein: A European Financial Haven with Robust Compliance Regulations

Overview

In the heart of Europe, the Principality of Liechtenstein stands as a beacon of financial stability and regulatory excellence. With financial services contributing significantly to its economy, Liechtenstein, the second smallest country in Europe, has carved out a niche as a specialized and internationally connected financial center.

Financial Sector

Boasting an impressive financial sector, Liechtenstein’s banking industry manages assets totaling approximately CHF 424 billion. The principality offers a favorable environment for the insurance industry, asset management, fund industry, and fiduciary services, employing 7,346 individuals, or around 17.2% of its workforce.

  • Wealthy Asset Management and Private Banking
  • Asset Management
  • Fund Industry
  • Fiduciary Services

Advantages and Access

The strategic location of Liechtenstein, situated between Austria and Switzerland, gives it unique advantages.

  • Member of the European Economic Area (EEA) since 1995
  • Unrestricted access to EU and EFTA markets
  • Privileged access to the Swiss economic space

Stable Political Climate and Predictable Tax Framework

Liechtenstein’s stable political climate, high living standards, and predictable tax framework make it an attractive business hub. The country has a population of just over 38,000 and is home to over 4,800 active companies.

  • Financial reliability with an AAA rating from Standard & Poor’s
  • Diverse economy

Financial Market Regulation and Supervision

Liechtenstein adheres to strict international standards for financial market regulation and supervision. The Financial Market Authority (FMA) of Liechtenstein regulates and supervises financial market participants, ensuring they comply with regulations set by global entities.

  • Regulations harmonized with EU standards
  • Enabled financial intermediaries to offer services across Europe under EU passport system

Commitment to Combating Money Laundering and Terrorism Financing

Liechtenstein’s commitment to combating money laundering and terrorism financing is evident in its implementation of global standards set by the OECD.

  • MONEYVAL commendation for efficient and suitable system against money laundering and terrorism financing

Conclusion

The political stability, favorable business climate, and commitment to financial regulations continue to make Liechtenstein an alluring location for businesses and international financial players looking for a stable, regulated financial hub in Europe.