Financial Crime World

Title: Liechtenstein’s Battle Against Financial Crimes: A Risk-Based Approach

Date: July 2020

In the heart of Europe, the principality of Liechtenstein is known for its open, internationally focused financial center. With a clear commitment to combat money laundering, terrorist financing, and organized crime, Liechtenstein is taking a proactive approach to safeguard its financial system.

Goal in Combating Financial Crimes

The Liechtenstein government’s strategy focuses on the following objectives to effectively counteract financial crimes:

  1. Effective implementation of international obligations and standards 1.1. compliance with the Moneyval, FATF, and EU anti-money laundering and terrorist financing legal acts 1.2. adherence to the 2009 Liechtenstein Declaration

  2. A risk-based approach to improve effectiveness and enhance risk management

  3. Ensuring effective prosecution in money laundering and terrorist financing cases

  4. Intensification of national and international cooperation and information exchange

Liechtenstein’s Role in International Bodies

As a proud member of Moneyval and the European Economic Area (EEA), Liechtenstein has made a commitment to implementing international recommendations and maintaining a strong stance against financial crimes.

  • Compliance with the Financial Action Task Force (FATF) and EU anti-money laundering and terrorist financing legal acts
  • Alignment with the 2009 Liechtenstein Declaration, focusing on transparency and tax cooperation

National and International Cooperation

Liechtenstein’s government employs a whole-of-government approach to combat financial crimes by forming strong partnerships between national authorities.

  • The PROTEGE Working Group, consisting of various authorities including the Ministry for General Government Affairs and Finance, Financial Market Authority, Financial Intelligence Unit, Office of the Public Prosecutor, Court of Justice, National Police, Fiscal Authority, Office for Justice, and Office for Foreign Affairs, works together to strengthen defense measures

Risk Assessments and Awareness

Identifying and mitigating risks plays a crucial role in the success of the anti-financial crimes strategy.

National Risk Assessments

  • NRA Money Laundering
  • NRA Terrorist Financing
  • NRA Virtual Assets

These assessments identify Liechtenstein’s specific risks and inform risk management decisions.

Services Offered in the Financial Center

The financial center offers a wide range of services, which are classified as having an increased risk of financial crimes, including:

  • Private banking
  • Wealth management
  • Cross-border transactions

Regulations and Supervision

Competent authorities continuously monitor international developments and implement recommendations to maintain a strong regulatory framework. Compliance starts from the onset of business relationships and continues with asset clarification.

Effective Prosecution

The government places importance on effective prosecution in the fight against financial crimes. Liechtenstein plays a significant role in investigating financial flows and identifying perpetrators and their networks.

Cooperation and International Engagement

In an effort to intensify cooperation between national and international partners, Liechtenstein strives to strengthen international engagement by contributing expertise and helping shape international standards for the effective fight against financial crimes.