Liechtenstein’s Efforts to Combat Money Laundering and Terrorist Financing

A Recent Report Highlights the Country’s Progress

Vaduz, Liechtenstein - A recent report has shed light on Liechtenstein’s efforts to combat money laundering (ML) and terrorist financing (TF). While there are areas that require improvement, the country has made significant progress in implementing its anti-money laundering and counter-terrorist financing measures.

Increase in Suspicious Activity Reports

According to the report, there has been an increase in the number of suspicious activity reports (SARs) and suspicious transaction reports (STRs) filed with the Financial Intelligence Unit (FIU). Although the FIU is satisfied with the quality of these reports, some areas still warrant improvement. Notably, SARs/STRs have rarely targeted higher-risk predicate offences such as tax evasion.

Challenges in Disseminating Information

The report also noted that while there has been an increase in the overall number of SARs/STRs filed, this has not translated to a corresponding increase in disseminations to law enforcement agencies (LEAs). Additionally, the tendency towards reactive or non-reporting, which was prevalent before 2018, can still be observed.

Robust Legal and Institutional Framework

Despite these challenges, Liechtenstein’s legal and institutional framework enables effective investigation and prosecution of ML and TF cases. The country has a robust system in place for tracing and freezing assets, with significant amounts seized and frozen in recent years.

Efforts to Prevent Terrorist Financing

Regarding TF, Liechtenstein has not yet seen any prosecutions or convictions, but the authorities are equipped to detect and prevent TF activities. The country has developed a TF Strategy aimed at preventing and suppressing TF, and other initiatives demonstrate an appropriate degree of commitment, inter-agency cooperation, and awareness by the competent authorities.

Areas for Improvement

The report highlighted areas for improvement, including weaknesses in the system for executing cross-border controls with Switzerland. However, communication between the Swiss Border Guard Corps and the National Police is intensive and smooth, with any infringements identified immediately notified to the National Police.

Conclusion

Overall, Liechtenstein has made significant progress in combating ML and TF, but there are still areas that require improvement. The country’s authorities continue to work towards strengthening its anti-money laundering and counter-terrorist financing measures.