Financial Crime World

Title: Liechtenstein’s Robust Anti-Money Laundering Framework: A European Economic Area Member’s Commitment

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Overview

The Financial Market Authority (FMA) of Liechtenstein, an independent financial market supervisory body, plays a crucial role in the Principality’s financial sector. This independent body was established to maintain financial stability, protect clients, and enforce anti-money laundering (AML) and combating financing of terrorism (CFT) regulations. The FMA supervises all Liechtenstein financial institutions, designated non-financial businesses and professions (DNFBPs), Virtual Asset Service Providers (VASPs), and adheres to the EU directives and regulations.

Liechtenstein’s Commitment to EU Regulations

As a member of the European Economic Area (EEA) since 1995, Liechtenstein complies with all EU directives and regulations in the financial services sector. This membership enables Liechtenstein financial institutions to enjoy the benefits of the freedom of establishment and free movement of services, adhering to the same legal requirements and standards as their European counterparts.

Implementation of AML and CFT Regulations

  • EU’s 4th and 5th AML Directives have been implemented into Liechtenstein law
  • Liechtenstein’s Due Diligence Act (DDA) and its related Due Diligence Ordinance (DDO) govern how Liechtenstein’s credit and financial institutions, DNFBPs, VASPs, and other relevant entities combat money laundering and terrorist financing

Beneficial Owner Register

Liechtenstein’s central beneficial owner register is another substantial aspect of its AML/CFT framework. The Act on the Register of Beneficial Owners of Legal Entities (VwbPG) regulates the collection, storage, and accessibility of beneficial ownership information. Authorities, including the Financial Intelligence Unit (FIU), the FMA, the national police, tax administration, the public prosecutor, and the Office of the Chamber of Lawyers, have permission to access the register.

Global Involvement

  • Member of the Financial Action Task Force (FATF) and its Regional Bodies
  • Working closely with other European countries to ensure effective implementation of AML/CFT standards

MONEYVAL Evaluation Report

  • Acknowledged Liechtenstein’s strong AML/CFT framework
  • Encouraged further enhancements in risk-based approach to AML/CFT supervision

FMA’s AML/CFT Supervision

  • Headed by Werner Meyer, Member of the Executive Board and Head of the Anti-Money Laundering and DNFBP Division
  • Strengthened its AML/CFT supervisory strategy and organization in 2018
  • MONEYVAL commended the FMA’s risk mitigation mechanisms in all sectors and encouraged continued efforts in maintaining a robust and risk-based approach to AML/CFT supervision