Liechtenstein Stays Ahead of the Game with Robust AML Laws and Regulations

Maintaining a Trusted Financial Hub

In a bid to maintain its reputation as a trusted financial hub, Liechtenstein has implemented stringent anti-money laundering (AML) laws and regulations. As a member of the European Economic Area (EEA), the country adheres to all EU AML/CFT provisions and has committed itself to implementing the recommendations of the Financial Action Task Force (FATF).

Comprehensive Whole-of-Government Approach

Liechtenstein’s AML strategy is built on a comprehensive whole-of-government approach, which involves close cooperation between national bodies responsible for preventing money laundering and financing of terrorism (ML/FT). This collaborative effort not only ensures compliance with FATF and EU requirements but also takes into account the country’s own interests.

Risk Assessments and Data Analysis

The effectiveness of Liechtenstein’s AML regime is underpinned by rigorous risk assessments, which identify, assess, and understand ML/FT risks. The country’s authorities have conducted thorough information and data analysis to determine its national risk exposure in recent years.

• Global Client Base: With a global client base and a thriving financial center, Liechtenstein faces unique challenges in terms of ML/FT risk.
• New Technologies: However, the country views risks from a global perspective, taking into account developments on new technologies such as blockchain and virtual assets.

Blockchain Act and Virtual Assets Regulation

In 2020, Liechtenstein was the first country to introduce a comprehensive regulation and supervisory system regarding virtual assets, known as the Blockchain Act. This regulatory framework aims to provide clarity and security for businesses operating in this space.

International Cooperation

The results of Liechtenstein’s risk assessments inform its AML/CFT strategy and action plan. The government has prioritized further intensification of cooperation, coordination, 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

By staying ahead of the curve on AML laws and regulations, Liechtenstein aims to maintain its position as a trusted financial hub while effectively combating ML/FT risks. This commitment to robust regulatory frameworks and international cooperation demonstrates the country’s dedication to upholding the highest standards in the fight against money laundering and terrorism financing.