Liechtenstein Fails to Meet International Standards on Financial Crimes and Terrorism Financing

FATF Evaluation Reveals Significant Shortcomings in Anti-Money Laundering and Counter-Terrorist Financing Regime

A recent evaluation by the Financial Action Task Force (FATF) has found that Liechtenstein is failing to meet international standards on combating financial crimes and terrorism financing. The report, released today, highlights significant shortcomings in the country’s anti-money laundering (AML) and counter-terrorist financing (CFT) regime.

Methodology and Findings

The assessment was based on the 2012 FATF Recommendations and used the 2013 Methodology, drawing on information provided by Liechtenstein as well as data gathered during an on-site visit to the country. The findings of the report have been reviewed and endorsed by the FATF.

Key Shortcomings Identified

According to the report, Liechtenstein has failed to effectively implement key measures to prevent the misuse of its financial system for illicit activities. Specifically:

• The country’s AML/CFT regime lacks sufficient resources, including personnel and funding.
• There is inadequate enforcement and supervisory powers in place.
• Significant weaknesses exist in the country’s legal framework, including deficiencies in laws governing money laundering and terrorist financing.

FATF Calls for Immediate Action

The FATF has called on Liechtenstein to take immediate action to address these shortcomings and bring its AML/CFT regime into line with international standards. The report outlines a series of priority actions that the country must take to improve its compliance with FATF recommendations.

Government Response

In response to the report’s findings, a spokesperson for the government of Liechtenstein has expressed commitment to addressing the issues raised and working closely with the FATF to implement necessary reforms. However, critics have expressed concerns about the lack of transparency and accountability in Liechtenstein’s financial sector, and are calling for greater scrutiny of the country’s banking system.

Full Report Available Online

The full report is available online and provides further details on the findings and priority actions outlined above.

Key Takeaways

• Liechtenstein has failed to meet international standards on combating financial crimes and terrorism financing.
• The country’s AML/CFT regime lacks sufficient resources, including personnel and funding.
• Significant weaknesses exist in the country’s legal framework, including deficiencies in laws governing money laundering and terrorist financing.
• The FATF has called for immediate action to address these shortcomings and bring Liechtenstein’s AML/CFT regime into line with international standards.