Liechtenstein Makes Strides Against Money Laundering, But Room for Improvement
MONEYVAL Praises Efforts, Highlights Areas for Further Development
The Council of Europe’s anti-money laundering (AML) and counter-terrorism financing (CFT) committee, MONEYVAL, has released its latest evaluation report on Liechtenstein’s efforts to prevent and combat money laundering. The report acknowledges the country’s substantial level of effectiveness but also highlights areas that require further improvement.
Good Practices in Place
- Comprehensive Strategic Analysis Reports: The Financial Intelligence Unit (FIU) in Liechtenstein produces valuable information for law enforcement agencies through its strategic analysis reports.
- Effective Measures Against Misuse: Authorities have implemented measures to prevent the misuse of legal persons and arrangements, including the obligation for certain entities to appoint a qualified member to their governing body.
- Improved Reporting Obligations: Compliance with reporting obligations has improved, although there is still room for improvement.
Areas for Improvement
- Enhanced Supervision: MONEYVAL recommends enhancing supervision to ensure that preventive measures are effectively applied by the private sector.
- Transparency of Beneficial Ownership Information: Liechtenstein needs to improve transparency of beneficial ownership information to prevent money laundering.
- Targeted Financial Sanctions: The implementation of targeted financial sanctions should be improved to effectively combat terrorism financing.
- Confiscation of Proceeds of Crime: Sanctions imposed for confiscating proceeds of crime are not sufficiently dissuasive or proportionate, and TF prosecutions in Liechtenstein raise concerns.
International Cooperation
Liechtenstein’s international cooperation efforts have improved, but issues related to double criminality requirements and the obligation to hear the eligible party before providing evidence to a foreign jurisdiction may still hinder effective cooperation.