Financial Crime World

Title: Liechtenstein’s Commendable Crusade Against Money Laundering and Terrorist Financing: An In-Depth Look

In the Heart of Europe: The Principality of Liechtenstein, a tiny European country, has earned recognition for its unwavering commitment to combating money laundering and terrorist financing (ML/TF), adhering to a strict zero-tolerance policy.

European Economic Area (EEA) Membership and Anti-Money Laundering (AML) Directives

  • Membership: As an EEA member, Liechtenstein implements the 4th and 5th EU Anti-Money Laundering Directives and Regulation (EU) 2015/847 on funds transfers.
  • Key Instruments: The Law on Professional Due Diligence for the Prevention of Money Laundering, Organised Crime, and Financing of Terrorism (Due Diligence Act; SPG) and the Ordinance on Professional Due Diligence for the Prevention of Money Laundering, Organised Crime, and Financing of Terrorism (Due Diligence Ordinance; SPV) implement these guidelines.

AML/CFT Stakeholders and their Responsibilities

Financial Market Authority (FMA)

  • Responsibility: Oversees compliance with AML regulations for entities under its jurisdiction.
  • Enforcement: Imposes measures and penalties for violations.

Persons Subject to Due Diligence

  • Financial Institutions, TT Service Providers, and DNFBPs: Comply with AML regulations when dealing with clients:
    1. Client identification and verification.
    2. Beneficial owner identification and verification.
    3. Source of funds and wealth clarification.
    4. Ongoing transaction monitoring.
    5. Filing of suspicious activity reports (SARs).

Financial Intelligence Unit (FIU)

  • Responsibility: Handles the processing, analysis, and dissemination of reports of suspected ML/TF activity.

Prosecution Authorities (Office of the Public Prosecutor)

  • Responsibility: Scrutinizes FIU analysis reports and initiates investigations where merited.

International Standards and Cooperation

  • FATF and Moneyval: Liechtenstein adheres to international AML/CFT standards.
  • Moneyval Evaluations: Regular assessments of national AML/CFT systems.

Recent Achievements and Accolades

  • Moneyval Evaluation Reports: Consistently exemplary performance in ML/TF risk understanding and supervisory approach.
  • Compliance with FATF Recommendations: High score in 37 out of 40 FATF Recommendations, no non-compliance ratings identified.
  • European Cooperation: Collaboration with the European Banking Authority (EBA) and the AML/CFT Standing Committee (AMLSC).
  • FMA Representation: Liechtenstein is represented by the FMA in the AMLSC as a non-voting member.