Financial Crime World

Liechtenstein’s Efforts to Combat Money Laundering and Terrorist Financing Recognized

The Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) has recently evaluated Liechtenstein’s efforts to combat money laundering and terrorist financing, praising the country’s significant progress in implementing its anti-money laundering and counter-terrorism financing (AML/CFT) measures.

Strong Supervisory Approach

Liechtenstein has a broad and convergent understanding of its money laundering and terrorist financing risks, with a strong supervisory approach in place. The Financial Market Authority (FMA), responsible for supervising financial institutions, operates a consistent risk-based supervision and has further increased its understanding of ML/TF risks.

Quality AML/CFT Supervision

The evaluation recognized the quality of AML/CFT supervision by the FMA, including:

  • Understanding of ML/TF risks
  • Fit & proper checks
  • Supervisory strategy
  • Effective application of remedial actions

MONEYVAL encouraged the FMA to continue its risk-based supervision pursued so far.

Liechtenstein’s legal framework for preventing money laundering and terrorist financing was assessed as “compliant” or “largely compliant” in 37 out of 40 recommendations. The country scored above average in five out of eleven subject areas examined, with no significant gaps identified in these areas.

Register of Beneficial Owners

The Register of Beneficial Owners of Legal Entities is maintained electronically by the Office of Justice and is accessible to authorized institutions for the purpose of fighting money laundering, predicate offenses to money laundering, and terrorist financing. Data from the register may also be disclosed to banks and financial institutions domiciled in EEA Member States or certain third states, subject to conditions specified in the VwbPG.

Global Recognition

Liechtenstein’s membership in MONEYVAL and its commitment to combating money laundering and terrorist financing have been recognized by the Financial Action Task Force (FATF) as part of a global network of nine regional bodies that work together to combat these threats. The country has also implemented various measures to prevent money laundering and terrorist financing, including:

  • Establishment of a Financial Intelligence Unit
  • Implementation of customer due diligence requirements

Conclusion

In conclusion, Liechtenstein’s efforts to combat money laundering and terrorist financing have been recognized by MONEYVAL, demonstrating the country’s commitment to protecting its financial system from these threats. The FMA’s risk-based supervision approach has also been praised, highlighting the importance of effective oversight in preventing these criminal activities.