Title: Liechtenstein’s Unyielding Commitment to Money Laundering and Terrorist Financing Prevention: International Cooperation and Strict Regulations

Overview

In the heart of Europe, the principality of Liechtenstein is setting new standards in the global financial world, with its steadfast dedication to combating money laundering (ML) and financing of terrorism (FT). This tiny EU member state is an active participant in various international organizations and committees, such as the European Economic Area (EEA) and the Council of Europe’s Moneyval Committee.

A Robust Regulatory Framework for an International Financial Sector

Liechtenstein’s financial sector is open and internationally oriented, necessitating a strong ML/FT regulatory framework. The country’s strategy focuses on close collaboration between all national authorities and financial market participants to meet all EU Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) provisions and Moneyval recommendations.

Addressing ML/FT Risks through Continuous Assessments

Liechtenstein acknowledges the importance of ML/FT prevention, a cornerstone of its financial center, which attracts clients from around the world. However, this global presence also brings ML/FT risks. To address these risks, the country takes a proactive approach from a global perspective.

In recent years, the principal authority in Liechtenstein has dedicated significant resources to ML/FT risk assessments, ensuring that all risks are identified, evaluated, and understood. This, in turn, enables the effective implementation and development of a national AML/CFT regime.

Innovative Approach to Virtual Assets Regulation

As a pioneer in virtual assets regulation, Liechtenstein introduced the “Blockchain Act” in 2020. This comprehensive law aims to ensure that due diligence standards are applied in the token economy, ensuring regulatory compliance. In the ever-evolving virtual asset market, continuous monitoring and assessing from a risk perspective is crucial.

International Cooperation in ML/FT Control Efforts

International cooperation plays a significant role in Liechtenstein’s ML/FT control efforts. In 2020, the country adopted an AML/CFT strategy and action plan based on risk assessments. Strengthening cooperation, coordination, and information exchange is a top priority, not only at a national but also an international level.

Liechtenstein maintains close relationships with key U.S. authorities such as FinCEN, Office of Foreign Asset Controls, the Department of Justice, and the Securities and Exchange Commission to counteract emerging risks effectively.

Headline Bullets:

• Liechtenstein: A Leader in Combating Money Laundering and Terrorism Financing
• Robust Regulatory Framework for an International Financial Sector
• Continuous ML/FT Risk Assessments
• Innovative Approach to Virtual Assets Regulation
• Strong International Cooperation for ML/FT Control Efforts
• Collaboration and Coordination at a National and International Level
• Maintaining Regulatory Compliance through Close US partnerships.