Money Laundering in Liechtenstein: A Look into the Country’s Anti-Money Laundering and Combating of Terrorism Efforts

Liechtenstein has made significant strides in its anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts, according to a recent technical note. The country has brought its legal framework more in line with Financial Action Task Force (FATF) recommendations, consolidated a robust institutional framework for combating money laundering and terrorist financing, and moved towards greater transparency.

Domestic Cooperation

Domestic cooperation is robust, with key stakeholders enjoying the trust of the financial and non-financial sectors. However, effective implementation remains uneven and not always optimal. One notable success story is Liechtenstein’s proactive use of its in rem regime of confiscation of criminal proceeds, which has proven to be an effective tool in combating money laundering.

Challenges

Despite these efforts, there is still room for improvement. The country must continue to work towards strengthening its AML/CFT framework and ensuring that it is effectively implemented across all sectors. This includes:

• Increasing transparency
• Cooperating with international partners
• Improving public awareness of the risks and consequences of money laundering and terrorist financing

International Recognition

Liechtenstein’s efforts have been recognized by the FATF, which has praised the country’s progress in bringing its AML/CFT regime more in line with international standards. However, the country must continue to work towards achieving optimal implementation and effectiveness if it is to remain a leader in the fight against money laundering and terrorist financing.

Conclusion

While Liechtenstein has made significant strides in its AML/CFT efforts, there is still much work to be done. The country’s proactive approach to combating money laundering and terrorist financing is to be commended, but effective implementation remains key to success.