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Financial Crimes and Terrorism Financing: Liechtenstein’s Proactive Approach
Liechtenstein has taken a comprehensive approach to combatting financial crimes and terrorism financing, exceeding international standards and expectations.
Whole-of-Government Approach
As a member of the European Economic Area (EEA) and MONEYVAL, Liechtenstein is committed to implementing the recommendations of the Financial Action Task Force (FATF). The country’s Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) regime is built on close cooperation between national bodies responsible for preventing financial crimes and terrorism financing.
Proactive Risk Assessment
Liechtenstein authorities have taken a proactive stance in identifying, assessing, and understanding the risks associated with money laundering and terrorism financing. They have conducted rigorous information and data analysis to develop a comprehensive national risk assessment (NRA), enabling them to identify and mitigate potential risks from a global perspective.
Unique Challenges
The country’s financial center, which serves a global client base, presents both opportunities and challenges. While Liechtenstein’s small geographic area offers competitive advantages, it also requires authorities to adopt a risk-based approach to address the unique challenges posed by its international clientele.
Regulatory Innovation
Liechtenstein was at the forefront of regulatory innovation when it introduced a comprehensive regulation and supervisory system for virtual assets (Blockchain Act) in 2020. This pioneering move has allowed authorities to evaluate data and assess risks related to token economies.
Risk Assessment Approach
The results of these risk assessments have informed the development of Liechtenstein’s AML/CFT strategy and action plan. The government has prioritized further intensification of cooperation, coordination, and exchange of information at both national and international levels, including close collaboration with counterparts in the United States.
Leadership in Combating Financial Crimes
Liechtenstein’s commitment to combating financial crimes and terrorism financing is unwavering, and its proactive approach has earned it recognition as a leader in this field. By staying ahead of emerging risks and trends, Liechtenstein is well-positioned to maintain its position as a trusted and secure financial center.
Key Points:
- Liechtenstein’s AML/CFT regime is built on close cooperation between national bodies
- The country has conducted rigorous information and data analysis to develop a comprehensive national risk assessment (NRA)
- Liechtenstein was at the forefront of regulatory innovation with its Blockchain Act in 2020
- The government prioritizes further intensification of cooperation, coordination, and exchange of information at both national and international levels
- Liechtenstein is recognized as a leader in combating financial crimes and terrorism financing