Financial Crime World

LIECHTENSTEIN’S BANKING SECTOR PROVES RESILIENT AGAINST GLOBAL UNCERTAINTIES, SAYS STANDARD & POOR’S

Economic Development Remains Stable

According to a recent report from Standard & Poor’s (S&P), Liechtenstein’s economic development remains stable despite global supply disruptions and increased commodity prices. The country’s export-oriented economy is expected to be impacted by these factors.

Strengths of Liechtenstein’s Economy

In its assessment, S&P highlights the following strengths:

  • Competitiveness: Liechtenstein’s business-friendly environment and highly skilled workforce make it an attractive location for foreign investors.
  • Flexibility: The country’s ability to adapt quickly to external political challenges through regulatory reforms has been praised.
  • Effective legal framework: Liechtenstein’s laws and regulations provide a stable and transparent environment for businesses.

Progress in Anti-Money Laundering and Tax Evasion Prevention

The report notes significant progress made in implementing anti-money laundering and tax evasion prevention regulations over the past decade. Liechtenstein has developed into a transparent financial centre, confirmed by the latest MONEYVAL report published in June 2022.

Strong Banking Sector

S&P’s ratings of Liechtenstein’s banks have shown:

  • Strong risk-adjusted capital ratios: Indicating a focus on strong capitalization over short-term shareholder returns.
  • High confidence: Providing high confidence in the domestic banking sector and crucial for clients’ long-term wealth planning.

Reclassification of Low-Risk Rating

The reclassification of Liechtenstein’s low-risk rating in Group 2 of the BICRA underscores the resilience and stability of the local banking centre. This is a significant achievement against the backdrop of extremely high global uncertainties and the ongoing war in Ukraine.

Government’s Decision to Start IMF Negotiations

The Bankers Association has welcomed the government’s decision to start accession negotiations with the International Monetary Fund (IMF), seeing it as an important step in further strengthening Liechtenstein’s good starting position for the country and its financial and banking centre.