Financial Crime World

Title: Liechtenstein’s Commitment to Combating Money Laundering and Terrorist Financing: A MONEYVAL Evaluation

Introduction

Vaduz, August 1, 2022

The Financial Market Authority (FMA) of Liechtenstein plays a crucial role in maintaining the financial market’s stability, ensuring client protection, and combating money laundering and terrorist financing (ML/TF) in the Principality of Liechtenstein.

Liechtenstein’s Obligations as an EEA Member

  • Full member of the European Economic Area (EEA) since 1995
  • Obligated to adopt and enforce all EU regulations and directives related to the financial sector
    • 4th and 5th EU Anti-Money Laundering Directives (AMLD)

FMA’s Role and Responsibilities

  • Oversees the compliance of financial service providers, DNFBPs (excluding lawyers and law firms), and VASPs
  • Enforces international ML/TF frameworks
  • More than 140 financial service providers in Liechtenstein

MONEYVAL Evaluation

Positive Results

  • Conducted during MONEYVAL’s 5th round of mutual evaluations
  • Reflects Liechtenstein’s commitment to combating ML/TF

Benefits of the VwbPG Act

  • Creates an electronic registry of beneficial owners
  • Accessible by relevant authorities and banks
  • Improves transparency and enhances due diligence capabilities

Recognition in MONEYVAL’s Evaluation Report

  • Broad understanding of ML/TF risks
  • Strong regulatory framework

Implementation of EU AML Directives

  • Leverages the freedom of establishment and free movement of services
  • Equal rights for EU credit and financial institutions

Areas for Improvement

Strengthening ML/TF Measures

  • Encouragement from MONEYVAL
    • Understanding of ML/TF risks
    • Regulatory policies
    • Supervisory strategy
    • Application of remedial actions

Conclusion

In conclusion, the FMA’s role in maintaining Liechtenstein’s financial stability and combating ML/TF is critical. The country’s commitment to implementing international ML/TF frameworks and cooperating with regional bodies like MONEYVAL demonstrates its dedication to creating a trustworthy financial environment. By continuously improving its ML/TF measures, Liechtenstein can continue to grow as a reputable financial hub in Europe.