Financial Crime World

Title: Liechtenstein’s Crusade Against Financial Crimes: A Comprehensive Strategy to Combat Money Laundering, Organized Crime, and Terrorist Financing

July 2020

A Comprehensive Approach to Combating Financial Crimes in Liechtenstein

Liechtenstein, the tiny European principality renowned for its open, internationally focused financial center, has taken a resolute stance against financial crimes. This article outlines the country’s strategy to prevent money laundering, terrorist financing, and organized crime, underscoring its commitment to international obligations and its determination to safeguard its reputation as a reputable financial hub.

Goal One: Adhering to International Standards and Specific Risks

  • International Commitments: Liechtenstein has adhered to international standards as a member of MONEYVAL since 1999 and the European Economic Area (EEA).
  • Implementing Recommendations: The government is committed to implementing the recommendations of the Financial Action Task Force (FATF) and the findings of the National Risk Assessments (NRA).
  • Risk Management: The country’s financial center strategy includes a commitment to combating financial crimes effectively.

Goal Two: A Risk-Based Approach

  • Assessing Risks: The strategy prioritizes a risk-based approach to continually identify and assess risks related to financial crimes.
  • High-Risk Activities: Financial services such as private banking, wealth management, and cross-border transactions are considered high-risk activities.

Goal Three: Effective Prosecusion

  • Investigating Financial Flows: Effective prosecution is essential in the fight against financial crimes.
  • Legal Framework: The government ensures a legal framework for prosecution and monitors international developments to adapt as necessary.

Goal Four: International Cooperation and Information Exchange

  • Strong International Engagement: The strategy emphasizes the importance of international cooperation and information exchange.
  • Relevant Bodies: Liechtenstein continues its strong international engagement in relevant bodies.

Implementation of the Strategy

  • PROTEGE Inter-Office Working Group: The PROTEGE Inter-Office Working Group was established to coordinate activities related to the development and enhancement of Liechtenstein’s defense measures.
  • Action Plan: The government has adopted a plan of action detailing specific fields of action, timetables, and necessary resources.

In conclusion, Liechtenstein’s approach to combating financial crimes is based on a comprehensive strategy aligned with international requirements and a risk-based focus on money laundering, terrorist financing, and organized crime. The country’s commitment to this effort is essential for maintaining the integrity and reputation of its financial center.