Successful Financial Crime Investigations in Liechtenstein Highlighted in Latest MONEYVAL Report

Effective Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Efforts in Liechtenstein

A recent evaluation report by MONEYVAL has commended Liechtenstein’s efforts to prevent and combat money laundering (ML) and terrorism financing (TF). The report, released on June 29, 2022, notes that the country’s authorities have made significant strides in addressing ML/TF risks, including understanding key threats, implementing effective policies, and utilizing financial intelligence.

The Role of Liechtenstein’s Financial Intelligence Unit (FIU)

The FIU has proven to be a valuable source of financial information, with its analytical reports instrumental in facilitating investigations and operational activities conducted by law enforcement authorities. Suspicious Activity Reports (SARs) and Suspicious Transaction Reports (STRs) submitted by individuals subject to the Due Diligence Act (DDA) are generally consistent with revenue-generating crimes in the country.

Notable Prosecution Successes

The report highlights several notable prosecutions, including:

• Convictions for self-laundering of proceeds from foreign fraud
• Introduction and application of criminal law measures, such as non-conviction based confiscation, to address failure to report suspicious transactions

International Cooperation in AML/CFT Efforts

Liechtenstein’s international cooperation in AML/CFT efforts is also highlighted as a key area of success. The country has implemented measures to minimize risks posed by double criminality requirements for tax evasion and the obligation to hear the eligible party before providing evidence to a foreign jurisdiction.

Recommendations for Future Improvement

The report suggests several recommendations for future improvement, including:

• Enhancing supervision and application of AML/CFT preventative measures by the private sector
  • Increasing transparency of beneficial ownership of legal persons and legal arrangements
  • Improving money laundering investigation and prosecution
  • Implementing targeted financial sanctions

By implementing these recommendations, Liechtenstein can further strengthen its AML/CFT framework and continue to demonstrate its commitment to preventing and combating ML/TF.