Liechtenstein on High Alert for Terrorist Financing Risks
A Small but Significant Threat Looms Over a Tiny European Principality
Despite its reputation as a safe haven for international finance, Liechtenstein is taking a proactive stance against money laundering and terrorism financing. As a member of the European Economic Area (EEA) and the Council of Europe Committee of Experts MONEYVAL, Liechtenstein has committed to adhering to all EU provisions and recommendations regarding anti-money laundering and combating the financing of terrorism (AML/CFT).
A Comprehensive Approach to Mitigate Risks
Liechtenstein’s government has enacted a comprehensive Financial Centre Strategy, which prioritizes international cooperation and the implementation of AML/CFT standards. The country conducted a thorough national risk assessment of money laundering and terrorist financing risks in 2018, which is updated regularly to ensure the country remains vigilant against emerging threats.
Key Measures Implemented by Liechtenstein:
- Conducting regular national risk assessments
- Implementing stringent measures to prevent abuse of the financial system
- Enhancing international cooperation between authorities and financial centre participants
- Prioritizing AML/CFT standards and continuous development of its defence mechanism
MONEYVAL Praises Liechtenstein’s Efforts
The latest MONEYVAL country assessment report, published in June 2022, praised Liechtenstein’s defence mechanism against money laundering and terrorist financing. Only one of five member countries to receive a positive review, Liechtenstein has demonstrated its dedication to upholding international standards.
A Message from Liechtenstein
The government has made it clear: Liechtenstein will take decisive action against money laundering and terrorist financing. By prioritizing international cooperation, AML/CFT standards, and continuous development of its defence mechanism, the country is sending a strong message to the global community: Liechtenstein is committed to safeguarding its financial centre and protecting its clients from illicit activities.
As the country continues to navigate this complex landscape, one thing is clear – Liechtenstein’s dedication to preventing terrorist financing risks will remain unwavering, ensuring the integrity of its financial system for years to come.