Money Laundering in Liechtenstein: A Closer Look at the Legal Framework and Enforcement Measures

Money laundering is a serious crime with global implications, including financing criminal activities and fueling economic instability. In Liechtenstein, the prosecution and enforcement of money laundering offenses are governed by the Liechtenstein Criminal Code (StGB) and the Due Diligence Act (SPG).

Prosecution and Enforcement of Money Laundering Offenses

Legal Authority

The public prosecutor’s office in Liechtenstein is responsible for investigating and prosecuting money laundering cases. This includes crimes involving assets originating from a criminal offense, criminal organizations, or terrorist groups.

Criminal Offenses and Penalties

Money laundering offenses in Liechtenstein can be committed in relation to assets derived from a range of predicate offenses, such as tax evasion. The perpetrator must act with the intent to disguise the unlawful origin of the assets. Maximum penalties for individuals convicted of money laundering are three to ten years in prison, and legal entities face fines of up to CHF 5,000,000 or double the amount gained through the infraction.

Extraterritorial Jurisdiction

Liechtenstein law permits the enforcement of money laundering laws even if the predicate offense or punishable act was committed outside of Liechtenstein. Assets derived from foreign criminal activities can also be confiscated if the crime is punishable under the law of the state in which it occurred.

Responsible Authorities

The public prosecutor’s office investigates and prosecutes money laundering cases, while the police may conduct investigative measures with the permission of the prosecutor. Managers and ordinary employees of legal entities are also held accountable for unlawful and culpable actions.

Corporate Criminal Liability

Legal and Administrative Authorities

The Liechtenstein parliament and the Prince impose anti-money laundering requirements through the Due Diligence Act (SPG) and its implementing regulations. The Financial Market Authority (FMA) and the Financial Intelligence Unit (FIU) provide guidelines.

Self-Regulatory Organizations and Professional Associations

The Liechtenstein Bankers Association has issued guidelines on due diligence obligations for banks.

Responsible Parties for Compliance and Enforcement

The FMA is responsible for anti-money laundering compliance and enforcement for financial institutions and businesses, while the Liechtenstein Chamber of Lawyers enforces anti-money laundering measures among the legal profession.

National Level Requirements

All requirements related to anti-money laundering are applicable at the national level in Liechtenstein.

Competent Authorities and Examination Criteria

The FIU is responsible for analyzing suspicious transaction reports and filing reports with the public prosecutor if there is a reasonable suspicion of money laundering or related activities. The FMA publishes an annual report detailing its activities and relevant decisions.

Financial Intelligence Unit

The FIU receives suspicious transaction reports from financial institutions and businesses subject to diligence requirements and analyzes them for reasonable suspicion of money laundering, predicate offenses to money laundering, organized crime, or terrorist financing.

Statute of Limitations

The limitation period for bringing enforcement actions related to financial penalties is three years, and no explicit limitation period applies to supervisory measures.

Maximum Penalties

Failure to comply with anti-money laundering requirements can result in monetary fines of up to CHF 360,000 for individuals and up to CHF 360,000 or CHF 1,000,000 for businesses.

Types of Sanctions

Additional sanctions include prohibition from starting new business relationships, temporary withdrawal of licenses, and temporary or permanent prohibition of executive functions for individuals found to have violated anti-money laundering requirements.

Penalties and Criminal Sanctions

Penalties for failure to comply with anti-money laundering requirements can be both administrative/civil and criminal in nature.

These measures reflect Liechtenstein’s commitment to an effective anti-money laundering regime as a leading international financial center.