Liechtenstein Urged to Improve Reporting of Suspicious Activity

Combating Money Laundering and Terrorism Financing

The Financial Intelligence Unit (FIU) in Liechtenstein has been praised for its efforts to combat money laundering and terrorism financing. However, a recent report by MONEYVAL suggests that the country still needs to improve its reporting of suspicious activity.

Key Findings of the MONEYVAL Report

• The FIU is an important source of financial information, but it rarely targets high-risk predicate offences such as tax evasion.
• Some trust and company service providers have not filed Suspicious Activity Reports (SARs)/Suspicious Transaction Reports (STRs) despite being required to do so.
• Liechtenstein’s legal framework allows for effective investigation and prosecution of all types of money laundering, but the country still has work to do in this area.

Recommendations for Improvement

• Authorities are urged to improve their investigations involving complex legal structures established and managed in Liechtenstein.
• The number of prosecutions related to terrorism financing needs to increase.
• International cooperation is essential in combating money laundering and terrorism financing, particularly given that predicate offences for these crimes are often committed abroad.

Strengthening International Cooperation

Liechtenstein has made progress in international cooperation, but there is still room for improvement. The country needs to address double criminality requirements for tax evasion and the obligation to hear the eligible party before providing evidence to a foreign jurisdiction.

Addressing Risks Posed by Non-Profit Organizations (NPOs)

The report highlights the importance of addressing the risks posed by NPOs operating as associations. While Liechtenstein’s authorities have made efforts in this area, more work is needed to ensure that these organizations are aware of their obligations related to counter-terrorism measures and how these can be misused for terrorism financing.

Conclusion

Liechtenstein has made progress in combating money laundering and terrorism financing, but there is still work to be done. The authorities need to improve their reporting of suspicious activity, increase the number of prosecutions related to terrorism financing, and strengthen international cooperation.