Title: Liechtenstein’s Proactive Approach to Financing Crime Prevention in its Internationally-oriented Financial Market

Introduction

The microstate of Liechtenstein, located in the heart of Europe, is recognized for its open, internationally oriented financial market. Adhering to strict international standards, Liechtenstein’s commitment to combating money laundering (ML) and terrorist financing (FT) is a crucial aspect of its strategy.

Liechtenstein’s Membership and Commitment to AML/CFT Regulations

• EEA Membership: As a member of the European Economic Area (EEA), Liechtenstein implements all EU regulations concerning Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT).
• MONEYVAL Membership: Liechtenstein’s membership in MONEYVAL, the Council of Europe’s Committee of Experts on evaluating AML/CFT measures, underscores its dedication to implementing the recommendations set forth by the Financial Action Task Force (FATF).

Proactive Approach to Addressing ML/FT and Whole-of-Government Strategy

Liechtenstein’s proactive approach to addressing ML/FT involves a whole-of-government strategy implementing international requirements and serving national interests.

Risk Assessment

Importance of Risk Assessment

Risk assessment is essential to Liechtenstein’s AML/CFT regime, ensuring recognition, evaluation, and mitigation of ML/FT risks.

National Risk Assessments (NRA)

Liechtenstein authorities have conducted substantial information and data analysis to determine the country’s risk exposure in National Risk Assessments (NRA).

Comprehensive Regulatory and Supervisory System for Virtual Assets – “Blockchain Act”

• Enactment of the “Blockchain Act” (2020): Liechtenstein’s demonstration of forward-thinking approach by implementing a comprehensive regulatory and supervisory system for virtual assets.
• Continuous Monitoring: Liechtenstein authorities closely monitor market changes and assess them from a risk perspective, ensuring a responsive approach to novel technologies and financial markets.

Action Plan and International Cooperation

• AML/CFT Strategy and Action Plan: Following risk assessments, the Liechtenstein Government adopts an AML/CFT strategy and subsequent action plan.
• International Cooperation: International cooperation and information exchange are crucial priorities, with a focus on strategic and operational collaborations between Liechtenstein authorities and their counterparts in countries such as the United States, including FinCEN, Ofac, DoJ, and SEC.