Money Laundering in Liechtenstein: A Comprehensive Approach

Liechtenstein’s financial market is renowned for its openness and international orientation, with a clear strategy to combat money laundering (ML) and financing of terrorism (FT). This comprehensive approach aims to effectively prevent these predicate offenses for ML and organized crime.

Compliance with EU and International Regulations

As an EU Economic Area member state, Liechtenstein fully implements all EU anti-money laundering (AML) and combating the financing of terrorism (CFT) provisions. Additionally, as a MONEYVAL member and Financial Action Task Force (FATF) committed country, Liechtenstein has implemented FATF recommendations.

Whole-of-Government Approach

Liechtenstein’s strategy is built upon close cooperation between national authorities and financial market participants in a whole-of-government approach. This collaboration ensures compliance with FATF and EU requirements while serving the country’s own interests. The understanding that combating all forms of abuse is essential for its financial center drives this approach.

Identifying and Assessing ML/FT Risks

Identifying, assessing, and understanding ML/FT risks is crucial to implementing and developing a national AML/CFT regime. Liechtenstein authorities have conducted in-depth information and data analysis through National Risk Assessments (NRAs) to determine the country’s risk exposure.

Virtual Assets Regulation

In 2020, Liechtenstein became the first nation to introduce comprehensive regulations for virtual assets (the “Blockchain Act”), ensuring relevant due diligence standards apply to the token economy. This early regulation allowed authorities to evaluate data for risk assessment purposes.

Risk Assessment and National AML/CFT Strategy

The results of these risk assessments inform the improvement of national AML/CFT measures. Based on findings, the Liechtenstein Government has adopted an AML/CFT strategy and action plan, prioritizing further cooperation, coordination, and information exchange at both domestic and international levels.

International Cooperation

This includes close collaboration with US authorities such as FinCEN, Office of Foreign Asset Controls, Department of Justice, and Securities and Exchange Commission.

Conclusion

With its rigorous approach to combating ML/FT, Liechtenstein has established itself as a reliable partner in the global fight against financial crime.