Financial Crime World

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Liechtenstein’s Zero-Tolerance Policy Towards Financial Crime Yields Positive Results

In recent years, Liechtenstein has demonstrated its unwavering commitment to combating financial crime by implementing a zero-tolerance policy towards money laundering and terrorist financing. As a member of the European Economic Area (EEA), Liechtenstein has implemented the 4th and 5th EU Anti-Money Laundering Directives as well as Regulation (EU) 2015/847 on information accompanying transfers of funds.

AML/CFT Framework

The country’s robust anti-money laundering and combating the financing of terrorism (AML/CFT) framework is anchored in:

  • 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)

The register of beneficial owners has been implemented in the Act on the Register of Beneficial Owners of Legal Entities (VwbPG), which is maintained by the Office of Justice.

Financial Market Authority

The Financial Market Authority (FMA) plays a crucial role in monitoring compliance with AML/CFT obligations and imposing measures and sanctions where violations occur. The FMA:

  • Evaluates information from the SPG reporting system
  • Conducts on-site inspections
  • Rigorously follows up on suspicious conduct on the financial market

Due Diligence Obligations

Financial institutions, trust service providers, and designated non-financial businesses and professions (DNFBPs) are subject to due diligence obligations outlined in the Due Diligence Act and implementing regulations. These requirements include:

  • Identifying and verifying clients, beneficial owners, and sources of funds and wealth
  • Ongoing transaction monitoring
  • Filing reports of suspicion

Financial Intelligence Unit

The Financial Intelligence Unit (FIU) receives and analyzes reports of suspicion from persons subject to due diligence and public authorities, and the Office of the Public Prosecutor initiates investigations where appropriate.

International Cooperation

Liechtenstein has been actively participating in AML/CFT efforts for decades, guided by international standards set by:

  • The Financial Action Task Force (FATF)
  • MONEYVAL, an FATF-style regional body

In June 2022, MONEYVAL published its fifth report on Liechtenstein, acknowledging the country’s progress in improving its measures to combat money laundering and terrorist financing.

Evaluation Results

The report praised Liechtenstein for having a broad and convergent understanding of its money laundering and terrorist financing risks, as well as a strong supervisory approach commensurate with these risks. The country performed exceptionally well compared to other evaluated countries and will be subject to the regular MONEYVAL follow-up process.

Liechtenstein’s AML/CFT laws, ordinances, and guidance were rated “compliant” or “largely compliant” with 37 of the 40 FATF recommendations, with above-average scores in five of 11 immediate outcomes examined. MONEYVAL did not identify any significant gaps in Liechtenstein’s AML/CFT measures.

EU/EEA Level

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