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Maximum Fine of CHF 1 Million Imposed for Anti-Money Laundering Violations

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The Financial Intelligence Unit (FIU) in Liechtenstein has imposed a maximum fine of CHF 1 million on financial institutions and businesses that fail to comply with anti-money laundering (AML) regulations. The fine can be up to double the amount gained through the administrative infraction, whichever is higher.

Penalties for Violations

  • Failures related to suspicious transaction reports, including:
    • Violating reporting requirements
    • Carrying out transactions without a paper trail
    • Not freezing assets in cases of suspected terrorist financing
  • Providing false information or refusing to provide requested information to the FIU constitutes a criminal infringement

Sanctions for Non-Compliance

The supervisory authorities may impose various sanctions on individuals and legal entities, including:

  • Prohibiting new business relationships
  • Requesting disciplinary measures from competent authorities
  • Publicly disclosing decisions against financial institutions or businesses
  • Temporarily prohibiting activities, withdrawing licenses, or suspending executive functions

Criminal Consequences

All violations of AML requirements related to suspicious transaction reports constitute criminal misdemeanors or infractions, which fall under the jurisdiction of the criminal court.

Process for Assessing and Collecting Sanctions

The process involves considering the level of risk involved in each case. The FIU may impose fines ranging from CHF 1,000 to CHF 1 million, depending on the severity of the violation and the level of risk posed.

Compliance is Key

Financial institutions and businesses must conduct timely risk-adequate monitoring of their business relationships, identify suspicious transactions, and report any irregularities to the FIU. Failure to comply with these regulations can result in severe penalties, including fines and criminal charges.

Conclusion

The maximum fine of CHF 1 million imposed by the FIU serves as a warning to financial institutions and businesses to comply with AML regulations and take proactive steps to prevent money laundering and terrorist financing.