Financial Crime World

Title: Justice Served: A Deep Dive into Liechtenstein’s Legal Framework for Financial Crimes

Understanding the Criminal Code, Prosecution Process, and Enforcement Mechanisms in Liechtenstein

Last Updated: October 24, 2023

In the ever-evolving world of financial crimes and international implications, the principality of Liechtenstein has recently garnered significant interest. This article provides an in-depth analysis of the legal aspects of financial crimes in Liechtenstein, covering the following topics:

  • Legal Framework
  • Enforcement

Classification of Criminal Offenses

1.1. The Liechtenstein Criminal Code (Strafgesetzbuch – StGB) governs offenses in Liechtenstein, where offenses are classified as either:

  • Felonies (Verbrechen)
  • Misdemeanors (Vergehen)

Statute of Limitations

1.2. In Liechtenstein, limitation periods for offenses depend on the maximum sentence:

  • No limitation for felonies with sentences of over 10 years or a lifetime sentence, genocide, crimes against humanity, and war crimes
  • Limitation periods for other felonies range from 5 to 10 years
  • Limitation periods for misdemeanors and infringements are one to three years

Extraterritorial Reach

1.3. Liechtenstein’s criminal law applies only to acts committed locally, but there are certain exceptions:

  • Offenses committed against Liechtenstein
  • Economic offenses like industrial espionage and counterfeiting
  • Ship or aircraft-related offenses, regardless of location

Corporate Liability and Personal Liability

1.4. The Liechtenstein Criminal Code introduced provisions for corporate criminal liability in 2010. Corporate criminal liability applies to acts committed unlawfully and culpably by a managing director or employee within the scope of the legal entity’s business activity.

Enforcement

Enforcement Authorities

2.1. The Liechtenstein Prosecution Service is responsible for investigating and prosecuting white-collar crime offenses in Liechtenstein.

Initiating an Investigation

2.2. White-collar investigations are initiated through either:

  • A criminal complaint
  • A suspicion of an offense, ex officio

Powers of Investigation

2.3. Investigating authorities in Liechtenstein have the power to seize evidence, execute house searches, freeze assets, and examine suspects and witnesses.

Internal Investigations

2.4. Legal entities are not mandated to conduct internal investigations but may do so on a voluntary basis. Voluntary internal investigations can help mitigate the risk of prosecution, ensure compliance with applicable laws, and establish organization required in civil and criminal proceedings.

2.5. Liechtenstein’s international cooperation for mutual legal assistance in criminal matters is regulated through both multilateral and bilateral treaties, such as:

  • European Convention on Mutual Assistance in Criminal Matters
  • European Convention on Extradition
  • European Convention on the Transfer of Proceedings in Criminal Matters

Prosecution

Upon the establishment of sufficient facts, the Prosecution Service decides whether to indict the perpetrator, who has the right to object to the indictment within 14 days. This article also explores recent developments, such as the impact of virtual assets and emerging trends in enforcement mechanisms, shaping the legal landscape for investigating and prosecuting financial crimes in Liechtenstein.