Financial Crime World

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Liechtenstein Stays Ahead of Financial Crime with Robust Strategy

In a bid to maintain its reputation as a financially secure haven, Liechtenstein has been working tirelessly to implement international standards aimed at preventing Money Laundering and Financing of Terrorism (ML/FT). As a member of the European Economic Area (EEA), the country is required to adhere to all EU Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) provisions, while also being part of MONEYVAL - the Council of Europe’s Committee of Experts on the evaluation of AML/CFT measures.

Whole-of-Government Approach

Liechtenstein has taken a comprehensive strategic approach to fighting financial crime, involving all national bodies responsible for prevention and financial market participants. This collaborative effort ensures that not only are international requirements met but also actions are taken in Liechtenstein’s own interest. The country’s authorities and financial market participants are well aware of their crucial roles in preventing ML/FT.

Key Components of the Whole-of-Government Approach

  • Involvement of all national bodies responsible for prevention
  • Collaboration with financial market participants
  • Understanding of individual roles in preventing ML/FT

Risk Assessment and Mitigation

Identifying, assessing, and understanding ML/FT risks is a critical aspect of Liechtenstein’s national AML/CFT regime. In recent years, the country has conducted rigorous information and data analysis to determine its risk exposure through National Risk Assessments (NRA). The results have been instrumental in shaping the country’s strategy and action plan.

Importance of Risk Assessment

  • Enables understanding of ML/FT risks
  • Shapes national AML/CFT strategy and action plan
  • Essential for effective prevention and mitigation efforts

Virtual Assets Regulation

In 2020, Liechtenstein became the first country to introduce a comprehensive regulation and supervisory system for virtual assets, known as the Blockchain Act. This pioneering move has allowed authorities to evaluate data and assess risks related to this emerging field. As the market continues to evolve rapidly, Liechtenstein’s authorities remain vigilant, monitoring changes and assessing them from a risk perspective.

Benefits of Virtual Assets Regulation

  • Enables evaluation and assessment of virtual asset-related risks
  • Allows for effective regulation and supervision of virtual assets
  • Facilitates innovation in the field while ensuring security and stability

International Cooperation

The country is committed to further intensifying cooperation, coordination, and exchange of information at both national and international levels. This includes close collaboration with its counterparts in the United States, such as FinCEN, the Office of Foreign Asset Controls, the Department of Justice, and the Securities and Exchange Commission.

Importance of International Cooperation

  • Enhances effectiveness of prevention and mitigation efforts
  • Facilitates sharing of best practices and expertise
  • Supports global efforts to combat ML/FT