Financial Crime World

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Liechtenstein’s Financial Sector Remains Stable Amid Global Challenges, FMA Reports

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The Principality of Liechtenstein’s financial sector has demonstrated remarkable stability despite a tumultuous global economic climate, according to the latest report from the Financial Market Authority (FMA).

Robust Enforcement Policies Key to Stability

The agency attributes this resilience to its robust enforcement policies, which have effectively curbed market abuse and protected customers.

Proactive Approach to Regulatory Breaches

The FMA’s Economic Report 2023 highlights the authority’s proactive approach in addressing regulatory breaches. In the reporting period:

  • 88 administrative proceedings or criminal investigations were initiated.
  • A total of 192 ongoing cases or preliminary inquiries were concluded.
  • The agency imposed fines totaling CHF 1.489 million for violations related to:
    • Banking law
    • Market manipulation
    • Insider trading
    • Dealings with clone companies
  • In one instance, a legal entity was slapped with a fine of CHF 500,000.

Criminal Complaints Filed Against Suspects

The FMA also took nine criminal complaints to the public prosecutor’s office, citing suspicion of:

  • Market abuse
  • Unauthorized deposits
  • Insider trading
  • Other financial malfeasance
  • Violations of trademark protection
  • Activity without registration under the Token and Trusted Technology Service Provider Act (TVTG)
  • Fraud related to clone companies

Regulatory Body’s Role in Developing Financial Market Regulations

As the government’s designated regulatory body, the FMA is tasked with developing and refining financial market regulations. In this capacity, it has drafted new rules governing:

  • Securities trading
  • Digitalization
  • Cryptocurrency trading

A revised version of the Financial Market Act is expected to be finalized by January 1, 2025, further solidifying Liechtenstein’s position as a stable and regulated financial hub.