Financial Crime World

Title: Liechtenstein’s Anti-Money Laundering Regime: MONEYVAL Report Highlights Progress and Remaining Challenges

Evaluation of Liechtenstein’s Anti-Money Laundering Regime (2002)

The European Committee on Crime Problems (CDPC), through its Select Committee of Experts on the Evaluation of Anti-Money Laundering Measures (MONEYVAL), conducted an evaluation of Liechtenstein’s anti-money laundering regime in the second round of mutual assessments.

Evaluation Team’s Visit (May 2002)

  • International team of experts visited Liechtenstein from 27 to 30 May 2002.
  • Objectives: Examine the effectiveness of the regime in practice, assess developments, and cover uncharted areas.

Vulnerabilities and Cases Under Investigation

  • Well-established financial center with potential vulnerabilities.
  • Criminals misused Liechtenstein’s financial and banking facilities.
  • Total of 74 cases under investigation during the visit.
  • Predicate offenses: Fraud, misappropriation, breach of trust, drug trafficking, and fraudulent bankruptcy.
  • New definition of money laundering.
  • Criminalization of self-laundering.
  • Broader range of predicate offenses.
  • Repeal of the Mutual Legal Assistance Act.
  • Independent Financial Intelligence Unit.
  • Strengthened judiciary and prosecution structures.
  • New police unit against economic and organized crime.

Preventive Measures

  • Revisions to the Due Diligence Act.
  • Replacement of the Due Diligence Ordinance.
  • Establishment of the Due Diligence Unit.

Challenges Ahead

  • Insufficient powers for Financial Intelligence Unit (FIU).
  • Impossibility of mutual legal assistance in tax-related criminal cases.
  • Resistance to criminalize negligent money laundering.
  • Potential tipping-off in the system.
  • Unclear reporting obligations.
  • Overreliance on FIU advice.
  • Continued existence of bearer accounts (passbooks).

Recommendations

  • Extend list of predicate offenses to cover all crimes.
  • Treat self-laundering and professional laundering uniformly.
  • Increase penalty levels for money laundering.
  • Consider criminalizing negligent money laundering.
  • Introduce corporate criminal liability.
  • Ratify Vienna Convention.
  • Reconsider denial of mutual legal assistance in fiscal matters.

Conclusion

The report recommends further improvements to Liechtenstein’s anti-money laundering regime. Addressing the challenges mentioned above will ensure a more comprehensive and effective response to financial crime.