Financial Crime World

Liechtenstein Steps Up Anti-Money Laundering Efforts, Achieves Strong Supervision Rating

Strengthening AML/CFT Measures

In its commitment to tackling financial crimes, Liechtenstein has implemented a comprehensive set of regulations aimed at combating money laundering and the financing of terrorism. The country’s efforts have been recognized by international standards, with praise from the Financial Action Task Force (FATF) and MONEYVAL, an FATF-style regional body.

A Zero-Tolerance Approach

At the heart of Liechtenstein’s AML/CFT strategy is a zero-tolerance approach towards money laundering and terrorist financing. The country has implemented key regulations, including:

  • The 4th and 5th EU Anti-Money Laundering Directives: These directives aim to strengthen the fight against money laundering and terrorist financing in the European Union.
  • Regulation (EU) 2015/847 on information accompanying transfers of funds: This regulation requires financial institutions to provide certain information about transactions, such as the originator and beneficiary of a payment.
  • The Law on Professional Due Diligence for the Prevention of Money Laundering, Organised Crime and Financing of Terrorism (Due Diligence Act; SPG): This law sets out the requirements for professional due diligence in the prevention of money laundering, organized crime, and financing of terrorism.
  • The Ordinance on Professional Due Diligence for the Prevention of Money Laundering, Organised Crime and Financing of Terrorism (Due Diligence Ordinance; SPV): This ordinance outlines the implementing regulations for the Due Diligence Act.

Robust Framework for Compliance

To effectively monitor compliance with AML/CFT obligations, Liechtenstein has established a robust framework involving several authorities. The key authorities include:

  • The Financial Market Authority (FMA): The FMA is responsible for monitoring compliance and imposing measures and sanctions where necessary.
  • The Financial Intelligence Unit (FIU): The FIU plays a crucial role in receiving and analyzing reports of suspicion from authorities and individuals.

Key Requirements for Compliance

Financial institutions, trust and company service providers, and designated non-financial businesses and professions (DNFBPs) must comply with AML/CFT rules when dealing with clients. These due diligence obligations include:

  • Identification and verification of clients and beneficial owners: Financial institutions must identify and verify the identity of their clients and beneficial owners.
  • Clarification of source of funds and wealth: Financial institutions must clarify the source of funds and wealth of their clients.
  • Ongoing transaction monitoring: Financial institutions must monitor transactions to detect suspicious activity.
  • Filing reports of suspicious activities: Financial institutions must file reports with the FIU when they suspect a criminal offense has been committed.

Recognition from MONEYVAL

Liechtenstein’s commitment to AML/CFT efforts has earned recognition from MONEYVAL, which published its fifth report on the country in June 2022. The report acknowledged Liechtenstein’s progress in improving measures to combat money laundering and terrorist financing.