Financial Crime World

Title: Liechtenstein’s Hidden Criminal Landscape: A Look at Human Trafficking, Arms Smuggling, Drug Trade, and Cyber Crimes

In the heart of Europe, the microstate of Liechtenstein is known for its picturesque landscapes, Alpine villages, and strict banking secrecy laws. However, beneath its tranquil facade lies a complex criminal landscape where various types of illicit activities unfold.

Human Trafficking and Smuggling

  • Small and fragmented local market for human trafficking
  • Evidence of local demand, especially in nightclub scene
  • Human smuggling not a significant issue due to effective border control and migration policies

Arms Trade

  • Strict regulations controlling arms import, export, and transit
  • Reports of small-scale smuggling of firearms and ammunition
  • Reputation as tax haven and financial hub attracts arms traffickers

Drug Trade

  • Not a significant drug trafficking hub, but…
  • Vulnerable to penetration by organized crime groups
  • Rising local demand for cocaine, especially among youths and foreign students
  • Online purchases of illicit drugs pose a significant money laundering risk

Environmental Crimes

  • Few natural resources and strong regulatory framework
  • Occasional reports of poaching in the country’s forests

Cyber Crimes

  • Growing threat from cybercrime in Liechtenstein
  • Over 40% of companies and institutions have been targeted by cyber-attacks
  • Typical attacks involve malware, such as ransomware and trojan horses

Financial Crimes

  • History of facilitating tax evasion and money laundering
  • Increasing frauds and financial crimes observed in recent years
  • Enhancing legal framework, such as anti-money laundering measures

Criminal Actors and Governance

  • Foreign criminal actors, especially those attracted to banking secrecy and tax evasion laws
  • Transnational criminal groups, such as ‘Ndrangheta, suspected to be present
  • Local law firms and private sector actors implicated in criminal activities, especially tax evasion schemes

Liechtenstein’s Democratic Government

  • Strong stance against organized crime
  • Active participant in international cooperation efforts
  • Committed to upholding international justice and law

Despite the challenges posed by organized crime, Liechtenstein’s democratic government remains vigilant and committed to addressing these issues.