LIECHTENSTEIN Adopts Risk-Based Approach to Compliance, Shows Improvement in Anti-Money Laundering Efforts
Strong Commitment to International Standards
The Principality of LIECHTENSTEIN has made significant strides in adopting a risk-based approach to compliance with international anti-money laundering (AML) and combating the financing of terrorism (CFT) standards. According to the latest assessment by the Financial Action Task Force (FATF), LIECHTENSTEIN has shown improvement in its efforts to combat money laundering and terrorist financing.
Key Areas of Improvement
- Assessing risk and applying a risk-based approach (R.1): Largely compliant
- National cooperation and coordination (R.2): Largely compliant
- Customer due diligence (R.10): Partially compliant
- Targeted financial sanctions related to terrorism and terrorist financing (R.6): Largely compliant
Challenges Remain
While LIECHTENSTEIN has made notable progress, there are still areas where improvement is needed:
- Confiscation and provisional measures (R.4): Partially compliant
- Combating money laundering through the misuse of prepaid cards and other new technologies (R.15): Non-compliant
Government Commitment to Strengthening Financial Regulatory Framework
The government has taken steps to improve transparency and beneficial ownership of legal persons and arrangements, with a rating of “partially compliant” in this area (R.24). The country’s efforts to regulate and supervise financial institutions have also shown improvement, with a rating of “partially compliant” in this area (R.26).
FATF Praises LIECHTENSTEIN for its Commitment
The Financial Action Task Force has praised LIECHTENSTEIN for its commitment to strengthening its financial regulatory framework and improving its AML/CFT efforts.
Rating Breakdown
For a complete breakdown of LIECHTENSTEIN’s rating in each area, see the table below:
| R. Number | Area | Compliance Status |
|---|---|---|
| R.1 | Assessing risk & applying risk-based approach | Largely compliant |
| R.2 | National cooperation and coordination | Largely compliant |
| R.3 | Money laundering offence | Largely compliant |
| R.4 | Confiscation and provisional measures | Partially compliant |
| R.5 | Terrorist financing offence | Partially compliant |
| R.6 | Targeted financial sanctions related to terrorism & terrorist financing | Largely compliant |
| R.7 | Targeted financial sanctions related to proliferation | Largely compliant |
| R.8 | Non-profit organisations | Non-compliant |
| R.9 | Financial institution secrecy laws | Compliant |
| R.10 | Customer due diligence | Partially compliant |
| R.11 | Record keeping | Largely compliant |
| R.12 | Politically exposed persons | Partially compliant |
| R.13 | Correspondent banking | Largely compliant |
| R.14 | Money or value transfer services | Partially compliant |
| R.15 | New technologies | Non-compliant |
| R.16 | Wire transfers | Partially compliant |
| R.17 | Reliance on third parties | Largely compliant |
| R.18 | Internal controls and foreign branches and subsidiaries | Largely compliant |
| R.19 | Higher-risk countries | Non-compliant |
| R.20 | Reporting of suspicious transactions | Partially compliant |
| R.21 | Tipping-off and confidentiality | Compliant |
| R.22 | DNFBPs: Customer due diligence | Partially compliant |
| R.23 | DNFBPs: Other measures | Partially compliant |
| R.24 | Transparency and beneficial ownership of legal persons | Partially compliant |
| R.25 | Transparency and beneficial ownership of legal arrangements | Non-compliant |
| R.26 | Regulation and supervision of financial institutions | Partially compliant |
| R.27 | Powers of supervisors | Compliant |
| R.28 | Regulation and supervision of DNFBPs | Non-compliant |
| R.29 | Financial intelligence units | Compliant |
| R.30 | Responsibilities of law enforcement and investigative authorities | Compliant |
| R.31 | Powers of law enforcement and investigative authorities | Largely compliant |
| R.32 | Statistics | Largely compliant |
| R.33 | Guidance and feedback | Partially compliant |
| R.34 | Sanctions | Largely compliant |
| R.35 | International instruments | Largely compliant |
| R.36 | Mutual legal assistance | Compliant |
| R.37 | Mutual legal assistance: freezing and confiscation | Largely compliant |
| R.38 | Extradition | Largely compliant |
| R.39 | Other forms of international cooperation | Largely compliant |