Financial Crime World

Liechtenstein Stays Ahead of Financial Crime: A Model for International Cooperation

A Commitment to AML/CFT

In a bid to prevent financial crime and combat terrorism financing, Liechtenstein has taken a proactive stance, earning recognition from international authorities. The tiny Alpine nation has implemented robust anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations, which have been commended by the Financial Action Task Force (FATF).

Zero Tolerance Policy

Liechtenstein’s commitment to AML/CFT is unwavering, with a zero-tolerance policy in place for money laundering and terrorist financing activities. The country has implemented the 4th and 5th EU Anti-Money Laundering Directives as well as Regulation (EU) 2015/847 on information accompanying transfers of funds.

Key Institutions

Several key institutions play crucial roles in enforcing AML/CFT regulations:

FMA Liechtenstein

  • The FMA is responsible for monitoring compliance with AML obligations and imposing measures and sanctions where necessary.
  • It ensures that financial institutions are adhering to the strict regulations put in place to prevent money laundering.

Financial Intelligence Unit (FIU)

  • The FIU receives and analyzes reports of suspicious activity, reporting to the Office of the Public Prosecutor if a criminal offense is suspected.
  • This unit plays a vital role in identifying potential cases of financial crime and bringing them to justice.

Office of Justice

  • Maintains the Register of Beneficial Owners of Legal Entities, which contains information on the beneficial owners of Liechtenstein companies, foundations, and trusts.
  • This register is essential for ensuring transparency in financial transactions and preventing money laundering.

International Cooperation

Liechtenstein has actively participated in AML/CFT efforts for decades, guided by international standards set by the FATF. As a member of MONEYVAL, an FATF-style regional body, the country regularly reviews its regulations and effectiveness with its peers.

In 2021/2022, Liechtenstein underwent a comprehensive evaluation by MONEYVAL, which recognized the country’s progress in improving its AML/CFT measures. The report highlighted Liechtenstein’s strong supervisory approach and identified areas for further improvement.

Compliance and Effectiveness

Liechtenstein scored highly in compliance with international standards, with 37 out of 40 FATF Recommendations rated as “compliant” or “largely compliant.” In terms of effectiveness, the country performed well, scoring above average in five out of 11 immediate outcomes examined.

By prioritizing AML/CFT and engaging in robust international cooperation, Liechtenstein has set a model for other countries to follow. The nation’s commitment to preventing financial crime is unwavering, ensuring a safer and more secure financial landscape for all.