Moneyval Commends Liechtenstein’sProgress in Money Laundering Fight, Urges Further Improvements
In a new report published on Wednesday, the Council of Europe’s anti-money laundering body, Moneyval, recognized Liechtenstein’s significant progress in combating money laundering (ML) and financing of terrorism (FT). The organization, however, encouraged the small European country to strengthen its measures further.
Liechtenstein’s Achievements and Areas of Improvement
Moneyval commended Liechtenstein’s:
- Understanding of ML/FT risks
- Setting of national AML/CFT policies
- Effective use of financial intelligence
Despite these accomplishments, there are areas the country needs to improve:
- Supervision
- Private sector adherence to AML/CFT measures
- Beneficial ownership transparency
- Money laundering investigations
- Application of targeted financial sanctions
Identifying Core ML/FT Risks
Despite having a good understanding of core ML/FT risks, Moneyval found room for improvement in risk assessment, particularly in identifying specific risks within certain sectors.
Financial Intelligence and Investigations
Competent authorities in Liechtenstein have been successful in seizing the proceeds of criminal activities. However, they could intensify their efforts in investigating and prosecuting sophisticated ML cases involving complexlegal structures within the country.
Cooperation with Neighboring Countries
Liechtenstein’s key border neighbors, Switzerland and Austria, are valuable partners in its efforts against terrorism and FT. Moneyval highlighted the competency of local authorities in detecting collection, movement, and use of funds linked to terrorist financing.
Private Sector Awareness and Regulatory Oversight
Private sector entities in Liechtenstein now have a better understanding of ML/FT risks. Banks and trust companies, in particular, have become more aware of risks related to private banking and wealth management. However, supervision of high- or medium-high-risk entities remains inadequate.
Accessing Beneficial Ownership Information
Access to beneficial ownership information on legal persons and legal arrangements is available to Liechtenstein’s competent authorities and the private sector. However, the completeness and validation of the information in the beneficial ownership register have not been reviewed extensively.
Conclusion
Moneyval acknowledged Liechtenstein’s progress but emphasized the need for continuous improvement. The country will enter a regular follow-up reporting process with Moneyval, joining a select group of five member-jurisdictions with this outcome.