Money Laundering Regulations in Liechtenstein Get Thumbs Up from MONEYVAL, But Room for Improvement Remains

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Liechtenstein has been commended by MONEYVAL, the Council of Europe’s anti-money laundering body, for its efforts to combat money laundering and financing of terrorism. However, the report highlights areas where improvement is needed to meet international standards.

Progress Made

MONEYVAL acknowledged that Liechtenstein has made significant progress in understanding money laundering and terrorism financing risks, setting national policies, coordinating efforts, using financial intelligence, confiscating criminal proceeds, and prosecuting cases. The country’s competent authorities have also produced high-quality financial intelligence and successfully confiscated criminal proceeds.

Areas for Improvement

However, the report identified several areas where improvement is needed:

• Enhancing Supervision: MONEYVAL urged Liechtenstein to strengthen its supervision over high-risk entities.
• Implementing Anti-Money Laundering Measures by Private Sector Entities: The country’s private sector has shown a good understanding of money laundering and terrorism financing risks, but more needs to be done to implement anti-money laundering measures effectively.
• Increasing Transparency of Beneficial Ownership Information: Liechtenstein has made beneficial ownership information available to competent authorities, but the completeness and plausibility of this information has not been thoroughly monitored.
• Strengthening Investigations and Prosecutions: MONEYVAL urged greater efforts in investigating and prosecuting complex money laundering schemes.

Strengths

Liechtenstein’s geographical proximity to Switzerland and Austria has facilitated close cooperation in combating terrorism and financing of terrorism. The country’s authorities are equipped with the necessary skills and knowledge to detect and investigate terrorist financing activities. Additionally, the private sector has shown a good understanding of money laundering and terrorism financing risks, with banks and large trust and company service providers demonstrating strong awareness linked to private banking and wealth management.

Commitment to International Cooperation

Liechtenstein has shown a commitment to providing timely and constructive international cooperation, despite some procedural constraints. The country will become one of only five member-jurisdictions subject to MONEYVAL’s regular follow-up reporting process as a result of the positive report.

In summary, while Liechtenstein has made progress in combating money laundering and financing of terrorism, there is still room for improvement in certain areas. The country’s authorities must continue to work towards strengthening its anti-money laundering measures to meet international standards.