Liechtenstein Takes Stance Against Terrorism Financing with Strict Regulations
Commitment to Combating Money Laundering and Financing of Terrorism
As a member of the European Economic Area (EEA), Liechtenstein has adopted a comprehensive strategic approach to fight against money laundering and financing of terrorism (ML/FT). The country implements all EU Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) provisions, in addition to adhering to recommendations by the Financial Action Task Force (FATF).
Whole-of-Government Approach
The government of Liechtenstein relies on cooperation among various national bodies responsible for preventing ML/FT. This “whole of government” approach also involves financial market participants, ensuring that FATF and EU requirements are met while addressing the country’s own interests.
Key Components of Liechtenstein’s AML/CFT Regime:
- Identification, assessment, and understanding of ML/FT risks
- Regular information and data analysis through National Risk Assessments
- Cooperation among national bodies and financial market participants
Proactive Measures to Mitigate Global Risks
Liechtenstein views global client base from a global perspective rather than solely focusing on national approaches. This allows for more effective management of global ML/FT risks.
Notable Achievements:
- Introduced the first comprehensive regulation and supervisory system regarding virtual assets (Blockchain Act) in 2020
- Regularly assesses data for risk evaluation purposes
- Closely monitors changes in the market from a risk perspective
International Cooperation and Collaboration
The government has adopted an AML/CFT strategy and action plan, prioritizing further cooperation and exchange of information at both national and international levels. This includes close collaboration with counterparts in the United States, such as FinCEN, the Office of Foreign Asset Controls, the Department of Justice, and the Securities and Exchange Commission.
Conclusion:
Liechtenstein’s commitment to combating terrorism financing is evident through its strict regulations and active engagement with international partners. By implementing FATF recommendations and EU provisions, the country aims to effectively fight against all forms of abuse and maintain a secure financial center.