Financial Crime World

Title: Financial Crime Under Scrutiny: Liechtenstein’s Fight Against Money Laundering and its Societal Impact

Overview

MONEYVAL (2003) report on Liechtenstein’s anti-money laundering regime

From 27th to 30th May 2002, a team of MONEYVAL examiners, accompanied by experts from a Financial Action Task Force (FATF) member state, evaluated Liechtenstein’s anti-money laundering regime in the second round of mutual evaluations.

Crime Situation

Crime Situation Unchanged

Liechtenstein faces unchanged crime situation since the first evaluation.

  • Drug trafficking and white-collar crimes, particularly investment fraud and embezzlement.
  • No hub for common forms of organized crime.

Vulnerability to Money Laundering

Liechtenstein’s financial services make it vulnerable to money laundering.

  • International criminals may misuse its financial and banking facilities.
  • 74 money laundering cases under investigation.

New Laws

  • Revised Criminal Code.
  • New definition of money laundering, self-laundering.
  • Broader range of predicate offenses.
  • Repealed old Mutual Legal Assistance Act.
  • Established Financial Intelligence Unit (FIU), independent office for international cooperation, extra judiciary, prosecutors, and a police unit against economic and organized crime.

Enforcement and Preventive Measures

Increased Efforts

  • Significant increase in suspicious transaction reports and investigations.
  • Compliance progress from financial intermediaries.
  • Collaborative institutions.

Ongoing Challenges and Recommendations

Further Improvements

  • Extend the list of predicate offenses.
  • Even treatment of self-laundering and professional laundering.
  • Raise penalty levels.
  • Consider negligent money laundering, corporate criminal liability.
  • Ratify relevant international conventions.
  • Improve FIU’s access to information and investigative means.
  • Implement reporting obligation for international transactions.

Consolidating Progress

MONEYVAL report concludes Liechtenstein has made significant progress.

  • Further efforts needed for sustainability.
  • Provide staff continuity and further training for local professionals.

For more information, visit the official MONEYVAL website at www.moneyval.org.