Financial Crime World

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Financial Crime in Liechtenstein: MONEYVAL Report Highlights Progress and Areas for Improvement

A recent evaluation report by the MONEYVAL committee has assessed Liechtenstein’s efforts to combat money laundering (ML) and terrorism financing (TF). The report highlights both progress made by the country in addressing these issues, as well as areas where further improvements are needed.

Progress Made

According to the report, Liechtenstein has a good understanding of the key ML and TF risks, with effective national AML/CFT policies and international cooperation in place. This demonstrates that the country is taking proactive steps to combat financial crime.

Areas for Improvement

However, there are some areas where further improvements are needed:

Enhanced Supervision

  • The report highlights the need for enhanced supervision of financial institutions to ensure they are complying with AML/CFT regulations.
  • This includes regular monitoring and inspections to identify any weaknesses or areas for improvement.

Application of AML/CFT Preventative Measures by the Private Sector

  • The private sector, including lawyers, accountants, and other professionals, need to apply AML/CFT preventative measures in their daily operations.
  • This includes implementing effective risk management systems and reporting suspicious transactions.
  • The report emphasizes the importance of transparency of BO information for legal persons and legal arrangements.
  • This includes maintaining accurate and up-to-date records of beneficial owners and making this information available to competent authorities upon request.

Money Laundering Investigation and Prosecution

  • Investigations involving complex legal structures established and managed in Liechtenstein pose challenges.
  • Sanctions imposed for failure to report suspicious transactions are not sufficiently dissuasive or proportionate.

Implementation of Targeted Financial Sanctions

  • The report highlights the need for the implementation of targeted financial sanctions against individuals and entities involved in ML and TF.
  • This includes freezing assets and imposing travel bans.

Conclusion

While Liechtenstein has made progress in addressing ML and TF, there is a need for continued efforts to address areas of concern. By enhancing supervision, improving application of AML/CFT preventative measures by the private sector, increasing transparency of beneficial ownership information, strengthening money laundering investigation and prosecution, and implementing targeted financial sanctions, the country can further strengthen its efforts to combat financial crime.