Financial Crime World

Liechtenstein’s Performance in Crime Prevention and Law Enforcement

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Liechtenstein has made significant strides in various aspects related to crime prevention, law enforcement, and social protection. This article provides a summary of its performance in these areas.

Criminal Justice and Security

Effective Judicial System and Prisons

  • Liechtenstein boasts an efficient and transparent judicial system with effective courts that can investigate and prosecute criminal cases.
  • The country has only one prison, which is well-equipped and meets international standards.
  • However, due to a lack of capacity, individuals serving sentences longer than two years are often sent to Austrian prisons.

Economic and Financial Environment

Banking Secrecy Laws and Efforts for Transparency

  • Liechtenstein is a leading offshore tax haven with tight bank secrecy laws, making it a major concern for money laundering.
  • The government has made efforts to increase banking transparency, including the creation of a special analytics unit to detect money laundering.
  • Financial secrecy does have an impact on information exchange.

Civil Society and Social Protection

Victim Support and Prevention Strategies

  • Liechtenstein has legislation and training mechanisms in place to provide effective treatment to victims of all types of crime, with a particular emphasis on sex-related crimes.
  • The country has created initiatives such as the Financial Sector Commission on Modern Slavery and Human Trafficking to help end these practices.
  • Prevention strategies are also in place, including early education campaigns and drug-use prevention programmes.

Organized Crime

Low Risk of Organized Crime Activity

  • Liechtenstein is not considered a hub for organized crime groups due to its robust territorial integrity and strong cooperation with neighboring countries.
  • The country’s financial controls help offset the attractiveness of its low tax rates to criminals.

Media Environment

Protection of Free Speech and Concerns about Ownership

  • Free speech is protected in Liechtenstein, but there are concerns about the ownership of media outlets by the two leading political parties.
  • There is no evidence of attacks on journalists by the state or criminal groups.