Financial Crime World

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Liechtenstein’s Compliance with International Standards against Money Laundering and Terrorism Financing

Background

The MONEYVAL Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism has conducted a report on Liechtenstein’s compliance with international standards set by the Financial Action Task Force (FATF). The report evaluates Liechtenstein’s effectiveness in combating money laundering and terrorism financing.

Compliance with FATF Recommendations

In 2021/22, MONEYVAL conducted a comprehensive assessment of Liechtenstein’s compliance with FATF recommendations. This evaluation was part of the 5th round of evaluations conducted by MONEYVAL (equivalent to FATF’s 4th evaluation cycle).

Assessment Ratings

The report acknowledges that Liechtenstein has made significant progress in understanding and addressing its money laundering and financing of terrorism risks. The country performed very well compared to other countries assessed globally.

Progress Made by Liechtenstein

MONEYVAL recognizes the efforts made by Liechtenstein to strengthen measures against money laundering and terrorism financing. Specifically, the country is rated as “compliant” or “largely compliant” for 37 of the 40 FATF recommendations related to laws, regulations, and guidelines.

Effectiveness

In terms of the effective implementation of the legal framework, Liechtenstein scored above average in five out of eleven subject areas examined. The other areas showed a moderate level of effectiveness, which is consistent with the average rating achieved by most countries assessed globally.

AML/CFT Supervision

The report highlights the quality of Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) supervision in Liechtenstein. MONEYVAL analyzed various aspects of the Financial Market Authority’s (FMA) approach to AML/CFT, including:

  • The FMA’s understanding of ML/TF risks
  • Fit & proper checks for senior management and shareholders of financial intermediaries
  • Supervisory strategy and policies
  • Intensity and scope of supervisory activity
  • Effective application of remedial actions and sanctions
  • Promotion of a clear understanding of AML/CFT obligations and risks to the financial sector

Conclusion

The report concludes that the FMA has made significant progress in its AML/CFT supervision, with a consistent risk-based approach following the strengthening of its strategy and organization in 2018. MONEYVAL encourages the FMA to continue this approach.

MONEYVAL’s evaluation demonstrates Liechtenstein’s commitment to combating money laundering and terrorism financing. The country’s efforts have been recognized globally, and it continues to be a leader in this area.