Liechtenstein’s Financial Sector Exposed to Money Laundering Risks, Experts Warn

A Comprehensive Review Reveals Weaknesses in Anti-Money Laundering Regime

A recent report has highlighted the significant money laundering risks posed by Liechtenstein’s financial sector. Despite its comprehensive investigative powers, the country’s authorities are struggling to effectively combat money laundering and terrorist financing.

The Challenges of Effective Regulation

Money laundering is criminalized in Liechtenstein, but the country relies heavily on trust service providers to obtain and retain records of beneficial ownership and control of legal persons. However, this approach has raised concerns about the effectiveness of the system.

• The report highlights that Liechtenstein’s reliance on trust service providers creates a risk of inadequate record-keeping and lack of transparency.
• The authorities’ struggle to effectively combat money laundering and terrorist financing is attributed to inadequate regulations and lack of effective enforcement.

Strengthening Anti-Money Laundering Measures

To strengthen its anti-money laundering (AML) regime, Liechtenstein should conduct a thorough review of its laws governing non-profit organizations to ensure they are adequate for combating the financing of terrorism.

• The report recommends that Liechtenstein’s authorities enhance their powers to conduct serious investigations and ensure that all financial institutions are subject to rigorous monitoring.
• Additionally, the report suggests that Liechtenstein enhance its cooperation with other countries to share information and best practices in combating money laundering and terrorist financing.

Conclusion

Overall, the report highlights the need for Liechtenstein to take a more proactive approach to addressing money laundering risks and ensuring the integrity of its financial sector. The country’s authorities must prioritize strengthening their anti-money laundering measures and enhance international cooperation to effectively combat these threats.

Note: The original article does not have specific references or citations, so I did not include any in this markdown format conversion.