Financial Crime World

Liechtenstein’s Financial Hub Thrives with Trust Mandates, Accounting and Reviews

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As the financial world continues to evolve, Liechtenstein has solidified its position as a major player in the industry. The country has seen significant growth in its financial sector, with 147 professional trustees and 245 trust companies licensed as of the end of 2020.

Trust Mandates and Financial Intermediaries

The activities of these licensed professionals include assuming board mandates under Article 180a of the Law on Persons and Companies Act (PGR). This has led to a surge in financial intermediaries and products supervised by the Financial Market Authority (FMA).

  • As of 2020, 10 undertakings for 24 services were registered under the Token and TT Service Provider Act (TVTG).
  • The TVTG defines the legal requirements for offering services on TT systems, which are transaction systems based on trustworthy technologies such as blockchains.

Supervision by the Financial Market Authority

The FMA is responsible for registering TT service providers and event-driven supervision. This has led to a significant increase in the number of financial market participants and products supervised by the authority.

  • The number of licenses issued in 2020 increased across various sectors, including banking, investment firms, payment institutions, electronic money institutions, asset management companies, and more.
  • The FMA also supervises financial intermediaries under the free movement of services, with a significant increase in the number of participants from the European Economic Area (EEA) and Switzerland.

Promoting Transparency and Trust

In an effort to promote transparency and trust, Liechtenstein has implemented various measures to ensure compliance with anti-money laundering and counter-terrorism financing regulations. This includes requiring professional trustees and trust companies to assume board mandates under Article 180a of the PGR.

  • The country’s financial hub is also supported by a robust regulatory framework, which ensures that all financial institutions operate in a safe and secure environment.

Conclusion

Overall, Liechtenstein’s financial sector has made significant strides in recent years, with a strong focus on trust mandates, accounting and reviews. This has attracted many international investors and businesses to the country, making it an attractive destination for those looking to establish a presence in the financial industry.