Financial Crime World

Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) Framework in Liechtenstein

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Overview

Liechtenstein’s AML/CFT framework has been assessed in a report, highlighting various aspects of the country’s laws, institutions, and practices. This article summarizes key points mentioned in the excerpt.

Money Laundering Investigations

Triggering Factors

  • Most money laundering (ML) investigations in Liechtenstein are triggered by incoming MLA requests due to predicate offenses committed abroad.
  • Financial flow analysis is essential for these investigations.

Risks and Threats

Typologies Observed

  • The National Risk Assessment (NRA) mirrors the typologies observed in the country, indicating consistency between investigated and prosecuted cases and national AML/CFT policies.
  • Tax crimes committed abroad have not been subject to an ML prosecution.

Confiscation of Proceeds

  • Confiscation is pursued as a policy objective with a comprehensive legal framework and strengthened capacities for Law Enforcement Agencies (LEAs) and prosecutors.
  • The authorities have managed to seize/freeze assets effectively.

Terrorist Financing

Prosecutions and Convictions

  • There have been no TF prosecutions/convictions in Liechtenstein.
  • A TF investigation was carried out without finding evidence of TF.

Implementation of UN TFS

  • Liechtenstein’s legal framework ensures automatic implementation of United Nations Security Council Resolutions related to TF/PF (Terrorist Financing/Prosperity).
  • The country has recently amended its legislation in line with FATF Recommendations covering TF/PF TFS-related supervision.

Conclusion

The report indicates that Liechtenstein has made efforts to strengthen its AML/CFT regime, but there are still areas for improvement, particularly in addressing tax crimes committed abroad and enhancing sanctions.