Money Laundering in Liechtenstein: Progress Made, But More Work Needed

Liechtenstein has made significant strides in combating money laundering and the financing of terrorism, according to a report published by MONEYVAL, the Council of Europe’s anti-money laundering body. While acknowledging the country’s progress, the report also identifies areas where further improvement is necessary.

Achievements

• Liechtenstein has demonstrated understanding of the risks of money laundering and terrorism financing
• Effective use of financial intelligence to investigate and prosecute cases
• Confiscation of criminal proceeds and effective investigations into terrorist financing cases
• Good quality financial intelligence system in place

Areas for Improvement

Supervision over Financial Institutions

• Enhance supervision over financial institutions, including high-risk entities

Application of Anti-Money Laundering Measures by the Private Sector

• Improve application of anti-money laundering measures by the private sector, particularly in areas such as private banking and wealth management
• Strengthen supervision over high-risk entities

Transparency around Beneficial Ownership

• Increase transparency around beneficial ownership, including monitoring completeness and plausibility of information

Money Laundering Investigations and Prosecutions

• Strengthen money laundering investigations and prosecutions, particularly in cases involving foreign predicate crimes

Cooperation with Neighboring Countries

• Liechtenstein has demonstrated good cooperation with neighboring countries Switzerland and Austria in combating terrorism
• Authorities are equipped to detect and investigate terrorist financing activities

Private Sector Understanding of Anti-Money Laundering Risks

• The private sector generally demonstrates a good understanding of anti-money laundering risks, particularly in areas such as private banking and wealth management
• However, supervision over high-risk entities is deemed insufficient

Beneficial Ownership Information

• Beneficial ownership information for legal persons and arrangements is available to authorities
• Completeness and plausibility of information has not been thoroughly monitored

International Cooperation

• Liechtenstein has demonstrated timely and constructive assistance in international cooperation requests

Conclusion

While there are areas where improvement is needed, Liechtenstein’s progress is notable. The country will be subject to MONEYVAL’s regular follow-up reporting process, a distinction shared by only five other member-jurisdictions.