Financial Crime World

Liechtenstein Takes Steps to Strengthen Regulatory Enforcement Against Financial Crime

The Principality of Liechtenstein has made significant progress in implementing the Financial Action Task Force (FATF) Recommendations, a set of standards aimed at preventing and combating money laundering and terrorist financing. In its latest assessment, Liechtenstein demonstrated a commitment to technical compliance with FATF requirements.

Key Areas of Progress

Liechtenstein scored well in several areas, including:

  • National Cooperation and Coordination (R.2): The country has established effective mechanisms for cooperation between law enforcement agencies and financial institutions.
  • Money Laundering Offence (R.3): Liechtenstein’s laws and regulations adequately address money laundering offences.
  • Targeted Financial Sanctions Related to Terrorism and Terrorist Financing (R.6) and Proliferation (R.7): The country has implemented targeted financial sanctions against individuals and entities involved in terrorist activities or proliferation.

Areas for Improvement

Despite progress, Liechtenstein needs to strengthen its regulatory enforcement framework in several areas:

  • Confiscation and Provisional Measures (R.4): The country’s laws do not provide sufficient confiscation powers.
  • Terrorist Financing Offence (R.5): Liechtenstein’s laws do not adequately address terrorist financing offences.
  • Non-Profit Organisations (R.8): The country does not have effective regulations in place for non-profit organisations.
  • Financial Institution Secrecy Laws (R.9): While Liechtenstein has implemented measures to prevent the misuse of financial institution secrecy, more work is needed to ensure full compliance.

International Cooperation

Liechtenstein demonstrated a strong commitment to international cooperation:

  • Mutual Legal Assistance (R.37): The country has established effective mechanisms for mutual legal assistance.
  • Extradition (R.39): Liechtenstein’s extradition arrangements are in place and functioning effectively.
  • Other Forms of International Cooperation (R.40): The country engages in various forms of international cooperation to combat financial crime.

Conclusion

Liechtenstein’s progress in implementing the FATF Recommendations demonstrates a commitment to strengthening its regulatory enforcement framework against financial crime. While there are areas for improvement, the country has made significant strides in addressing key vulnerabilities and engaging in international cooperation. With continued efforts, Liechtenstein can further enhance its reputation as a leader in combating financial crime.