Financial Crime World

Financial Crime Investigation Process in Liechtenstein: Zero-Tolerance Policy

Liechtenstein has been a leader in anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts for years, with a strict zero-tolerance policy in place. As an EEA member, it has implemented various EU regulations to prevent financial crimes.

Key Regulations and Frameworks

  • The Law on Professional Due Diligence for the Prevention of Money Laundering, Organised Crime and Financing of Terrorism (Due Diligence Act; SPG)
  • The Ordinance on Professional Due Diligence for the Prevention of Money Laundering, Organised Crime and Financing of Terrorism (Due Diligence Ordinance; SPV)

These regulations outline the requirements for due diligence obligations by financial institutions, trust service providers, and designated non-financial businesses and professions (DNFBPs).

Financial Intelligence Unit (FIU) Leads Suspicious Transaction Analysis

The FIU is responsible for:

  • Receiving and analyzing reports of suspicious transactions from persons subject to due diligence and public authorities
  • Identifying potential money laundering offenses and reporting them to the Office of the Public Prosecutor
  • Analyzing general threats of money laundering, predicate offenses of money laundering, and financing of terrorism

Prosecution Authorities Initiate Investigations and File Charges

The Office of the Public Prosecutor examines the FIU’s analysis reports and initiates investigations where necessary. If there is sufficient suspicion of an offense, it files charges with the competent court.

Compliance with International Standards

Liechtenstein has been actively participating in AML/CFT efforts for decades, guided by the international standards of the Financial Action Task Force (FATF). It is a member of MONEYVAL, an FATF-style regional body based at the Council of Europe in Strasbourg. In 2021/2022, implementation of the FATF Recommendations in Liechtenstein was reviewed by MONEYVAL as part of its fifth round of evaluations.

MONEYVAL’s Report Commends Liechtenstein for Progress

The report published by MONEYVAL on June 29, 2022, commended Liechtenstein for its progress in improving measures to combat money laundering and financing of terrorism. The country performed well compared to other countries evaluated.

Centralization of AML/CFT Responsibilities at the EU/EEA Level

At the EU/EEA level, AML/CFT responsibilities relating to the financial market have been centralized at the European Banking Authority (EBA). The AML CFT Standing Committee (AMLSC) was created to fulfill these tasks. The FMA represents Liechtenstein in the AMLSC as a non-voting member.

Conclusion

Liechtenstein’s financial crime investigation process has been praised for its zero-tolerance policy and commitment to combating money laundering and financing of terrorism. Its implementation of international standards and guidelines ensures that it remains at the forefront of global efforts to prevent financial crimes.