Liechtenstein’s Efforts to Combat Money Laundering and Terrorism Financing Praised

Liechtenstein has recently received praise for its robust efforts to combat money laundering (ML) and terrorism financing (TF). The country’s financial intelligence unit (FIU), law enforcement agencies, and regulatory body have all been commended for their effective measures to prevent and detect ML/FT.

Effective Financial Intelligence Unit

Liechtenstein’s FIU is a model of effectiveness, conducting thorough operational analysis of suspicious activity reports (SARs) and producing high-quality reports. The unit has established a strong relationship with reporting entities and plays a crucial role in raising awareness of ML/FT risks among financial institutions.

Strong Law Enforcement and Prosecution Efforts

Law enforcement agencies, including the Public Prosecutor and national police, have also been commended for their efforts to investigate and prosecute ML/FT cases. A comprehensive legal framework is in place, allowing for serious investigations and effective prosecutions.

Preventive Measures

Preventive measures, such as anti-money laundering (AML) and combating the financing of terrorism (CFT), are robust in Liechtenstein. The country has implemented a risk-based approach, requiring financial institutions to conduct customer due diligence (CDD) on a risk-sensitive basis. Financial institutions must maintain profiles for each long-term customer, consolidating CDD data and including beneficial ownership information.

Room for Improvement

However, the assessment noted that there is room for improvement in some areas. The legal provisions governing AML/CFT may give excessive discretion to financial institutions when applying the risk-based system, and the country’s framework could be strengthened to address the misuse of new technologies.

Effective Supervision

The Financial Market Authority (FMA), an independent supervisor, has been praised for its effective supervision of financial institutions, including on-site examinations. The FMA has implemented a range of AML/CFT preventive measures, but additional resources would be needed to improve overall effectiveness.

Conclusion

Overall, Liechtenstein’s efforts to combat ML/FT have been commended as adequate and effective, with the country covering almost all required procedural aspects to ensure compliance.