Title: Liechtenstein’s Crusade Against Financial Crimes: A Zero-Tolerance Policy and International Recognition

Introduction

In the heart of Europe, the tiny principality of Liechtenstein stands as a beacon against financial crimes such as money laundering and terrorism financing. With its unwavering commitment to preventing these illicit activities, Liechtenstein has gained international recognition for its robust legal infrastructure and stringent enforcement.

Adoption of EU Anti-Money Laundering Directives

As a member of the European Economic Area (EEA), Liechtenstein has adopted and implemented the 4th and 5th EU Anti-Money Laundering Directives, as well as Regulation (EU) 2015/847. These measures contribute to the comprehensive legal framework governing the prevention of financial crimes in the country.

Legal Infrastructure Against Financial Crimes

Key provisions against financial crimes can be found in the following legislations:

1. Law on Professional Due Diligence for the Prevention of Money Laundering, Organised Crime and Financing of Terrorism (SPG)
2. Ordinance on Professional Due Diligence for the Prevention of Money Laundering, Organised Crime and Financing of Terrorism (SPV)
3. Act on the Register of the Beneficial Owners of Legal Entities (VwbPG)

The Office of Justice is responsible for overseeing the maintenance of the beneficial owner register.

Key Players in the Fight Against Financial Crimes

FMA Liechtenstein

The Financial Market Authority (FMA) plays a crucial role in monitoring compliance with financial crimes prevention measures by those subject to due diligence. It investigates any suspected abusive conduct on the financial market and reports findings to the relevant authorities.

Persons Subject to Due Diligence

Financial institutions, TT service providers, and Designated Non-Financial Businesses and Professions (DNFBPs) must adhere to anti-money laundering rules. Due diligence obligations include:

• Client identification and verification
• Beneficial owner identification and verification
• Source of funds and source of wealth clarification
• Ongoing transaction monitoring
• Reporting of suspected money laundering activities

Financial Intelligence Unit (FIU)

The Financial Intelligence Unit (FIU) collects and analyzes reports of suspected financial crimes from reporting entities and public authorities. It then investigates potential criminal offenses and reports findings to the Office of the Public Prosecutor while analyzing broader threats of money laundering, money laundering predicates, and terrorist financing activities.

Prosecution Authorities

The Office of the Public Prosecutor handles investigations into suspected criminal offenses related to money laundering, money laundering predicates, and terrorist financing. It also enforces laws concerning the late or non-filing of reports of suspicion.

International Cooperation

Liechtenstein’s commitment to combating financial crimes is in line with international standards, as set by the Financial Action Task Force (FATF). Since 1999, Liechtenstein has been a member of MONEYVAL, an FATF-style regional body based in Strasbourg. In the 2021/2022 evaluation round, Liechtenstein received positive results for its strong supervisory approach and compliance with international standards.

MONEYVAL’s report acknowledged Liechtenstein’s broad and convergent understanding of money laundering and terrorist financing risks and commended the country’s progress in improving measures to combat these crimes.

European Level Cooperation

At the European level, AML/CFT responsibilities related to the financial market are overseen by the European Banking Authority (EBA). The AML/CFT Standing Committee, composed of high-level representatives from national supervisory authorities, develops regulatory technical standards and guidelines to ensure harmonization among member countries. The FMA represents Liechtenstein in the AMLSC as a non-voting member.