Financial Crime World

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Money Laundering (ML) and Terrorism Financing (TF) in Liechtenstein

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Executive Summary

Based on the provided information, here is a summary of the key findings regarding ML and TF in Liechtenstein.

Lack of Sophisticated ML Investigations/Prosecutions

  • There has been a lack of ML investigations/prosecutions targeting sophisticated schemes that include complex legal structures established and managed in Liechtenstein.
  • This suggests that the country’s current AML/CFT framework may not be effective in detecting and preventing complex ML schemes.

Asset Recovery (AR)

Confiscation of Proceeds of Crime

  • Confiscation of proceeds of crime is pursued as a policy objective, with competent authorities having established strong inter-institutional cooperation.
  • Both conviction- and non-conviction-based confiscation are frequently applied in practice, resulting in considerable amounts seized/frozen and confiscated.

Counter-Terrorism Financing (CFT)

TF Strategy and Initiatives

  • Liechtenstein has developed a TF Strategy aimed at preventing/suppressing TF, demonstrating an appropriate degree of commitment, inter-agency cooperation, and awareness.
  • Measures to disrupt TF are available, but none have been applied yet.

Terrorist Financing

Lack of Prosecutions/Convictions

  • There have been no TF prosecutions/convictions in Liechtenstein.
  • The country has never received an MLA request from foreign counterparts related to terrorism or TF.
  • One TF investigation was carried out, but it did not result in further proceedings as no evidence of TF was found.

Risk Profile

Medium Risk of TF and Low Risk of ML

  • The risk profile of Liechtenstein is characterized by a medium risk of TF and a low risk of ML, which is consistent with the observed lack of prosecutions/convictions.
  • This suggests that while there may be some vulnerabilities in the country’s AML/CFT framework, overall it is effective in preventing and detecting TF.

Conclusion

Overall, Liechtenstein has made efforts to strengthen its AML/CFT framework and develop skills and knowledge on how to detect collection, movement, and use of funds for TF purposes. However, there are still areas for improvement, such as increasing the number of ML investigations/prosecutions targeting sophisticated schemes and addressing weaknesses in cross-border controls.