Liechtenstein Financial Center Remains Resilient in Challenging Times

The Liechtenstein financial center has demonstrated remarkable stability and resilience in 2022, despite facing a challenging environment, according to the country’s Financial Market Authority (FMA).

Challenges Faced by the Financial Sector

The FMA notes that the war in Ukraine, geopolitical tensions, and rising inflation posed significant challenges to the financial sector. However, the authority reports that the Liechtenstein financial center has held up well.

Key Statistics:

• Assets under management at Liechtenstein banks fell by just 3.1 percent to CHF 411.1 billion.
• The decline in assets can be attributed to currency effects and negative market trends, but was offset by a continued flow of new net money into the sector.
• Profitability of ordinary business activities grew by 12.2 percent year on year.

FMA’s Supervisory Activities

The enforcement of regulations is becoming an increasingly important part of the FMA’s supervisory activities. Last year, an enforcement decision-making body was established to take decisions in serious cases and impose fines and punitive measures.

Positive Audit Report from Moneyval

The country received a positive audit report from Moneyval in 2022, with the Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism affirming that Liechtenstein has a robust system in place to prevent money laundering and terrorist financing.

Quote:

“The Liechtenstein financial center has once again proven itself to be highly stable and resilient,” said an FMA spokesperson. “We will continue to work closely with the sector to ensure that it remains a trusted and secure destination for investors.”