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Liechtenstein Tightens Screws on Anti-Terrorism Financing Regulations

Maintaining its Position as a Global Financial Hub

In a bid to maintain its position as a global financial hub, Liechtenstein has reaffirmed its commitment to implementing stringent anti-terrorism financing regulations. The tiny European principality has been hailed for its proactive approach in combating money laundering and terrorist financing.

A Proactive Approach to AML/CFT

Liechtenstein’s approach to Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) is centered on a whole-of-government strategy that involves close cooperation between national authorities and financial market participants. The government, public authorities, and financial centre stakeholders are all aware of their crucial role in effectively combating money laundering and terrorist financing.

Regulatory Framework

As a member of the European Economic Area (EEA), Liechtenstein is required to implement all EU provisions related to AML/CFT. Additionally, its membership in MONEYVAL has enabled the country to leverage the expertise of the Financial Action Task Force (FATF) in shaping its regulatory framework.

Risk Assessment and Mitigation

The country’s risk assessment of money laundering and terrorist financing risks, which was carried out in 2018 and updated regularly, has proven to be a vital component of its AML/CFT defence mechanism. The identification of risks and the adoption of corresponding measures are continuously reviewed and refined to ensure that they keep pace with international developments.

Recognition by MONEYVAL

Liechtenstein’s commitment to combating money laundering and terrorist financing has been recognized by MONEYVAL, which praised the country’s progress in its latest assessment. Only five member countries have achieved this level of compliance, solidifying Liechtenstein’s position as a leader in AML/CFT regulation.

Conclusion

In conclusion, Liechtenstein’s commitment to anti-terrorism financing regulations is unwavering, and its proactive approach has earned it recognition as a leader in this field. The country’s continued emphasis on risk assessment, regulatory development, and cooperation between authorities will undoubtedly ensure that it remains at the forefront of AML/CFT regulation for years to come.