Financial Crime World

Liechtenstein’s Anti-Money Laundering (AML) Requirements and Regulations

Overview of AML Obligations in Liechtenstein

Liechtenstein has implemented anti-money laundering (AML) regulations to prevent and combat money laundering activities. These regulations apply to various financial institutions and non-financial businesses and professions, which are required to fulfill specific duties and responsibilities.

Key Points from the Text

  • Scope of AML Regulations: The following entities are subject to AML regulations in Liechtenstein:

    • Banks
    • Investment firms
    • E-money businesses
    • Insurance undertakings
    • Law firms providing tax advice
    • Real estate agents
    • Others

  • Duties and Responsibilities: Entities subject to AML regulations must perform the following duties:

    • Identify and verify the identity of customers, beneficial owners, and recipients of distributions
    • Establish a business profile
    • Supervise business relationships at a level commensurate with risk

Specific Requirements and Exceptions

  • Types of Payments or Money Transmission Activities: Certain types of payments or money transmission activities are subject to AML requirements in Liechtenstein, including:

    • Transactions involving cash or crypto-assets worth CHF 10,000 or more
    • Transactions related to the trade of artworks and non-fungible tokens

  • Exceptions: There may be exceptions to these regulations for certain types of transactions or entities that are exempt from AML requirements.

Consequences of Non-Compliance

Failure to comply with AML obligations can result in penalties, including fines and other legal consequences.

Risk-Based Approach and Monitoring

  • Risk-Based Approach: The regulation emphasizes a risk-based approach to AML compliance, requiring entities to assess the level of risk associated with their business relationships and transactions and to take appropriate measures to mitigate that risk.
  • Monitoring and Reporting: Entities subject to AML regulations must also conduct timely risk-adequate monitoring of their business relationships and report suspicious activities to the relevant authorities.

Registration and Licensing

  • TT Service Providers: Some entities, such as TT service providers, are required to register with the Financial Market Authority (FMA) and obtain a license before providing services in Liechtenstein.