Liechtenstein Government Introduces New Banking Regulations to Combat Money Laundering
The European Banking Authority (EBA) has unveiled its final Risk-Based Supervision Guidelines for crypto-asset service providers (CASPs), marking a significant move to combat money laundering in Liechtenstein.
A Paradigm Shift in Supervisory Landscape
The new guidelines provide a consistent, risk-based approach to anti-money laundering (AML) and countering the financing of terrorism (CFT) supervision for national competent authorities. This shift is seen as a response to the growing significance of crypto-assets and their service providers in the financial landscape.
Defining CASPs and Authorization
Under the European Markets in Crypto-Assets Regulation (MiCAR), CASPs are defined as legal entities professionally engaged in crypto-asset services. These entities must obtain authorization from the relevant regulatory authority before providing such services. The proposed Anti-Money Laundering Regulation (AMLR) is set to further expand the scope of CASPs under MiCAR, making them obliged entities under AMLR.
Risk-Based Approach to Supervision
The EBA’s guidelines focus on the role of national competent authorities rather than directly regulating CASPs themselves. The authority advocates for a risk-based approach in AML/CFT supervision, emphasizing the importance of understanding the technological landscape’s impact on money laundering and terrorist financing risks.
Factors to Consider
To implement these guidelines effectively, competent authorities must assess factors such as:
- Centralization
- Decentralization
- Open-source and proprietary wallets
- Permissioned or permissionless ledgers
- Varying degrees of anonymity
The guidelines also call for periodic reviews of risk assessments and emphasize the need for comprehensive training for both competent authority staff and internal business personnel.
Impact on Crypto-Asset Sector in Liechtenstein
The introduction of these new regulations is expected to have a significant impact on the crypto-asset sector in Liechtenstein, with CASPs required to adapt their operations to comply with the new requirements. Bergt & Partner AG, an international law firm specializing in banking and financial market law, is available to provide guidance and support to clients navigating this changing regulatory landscape.
Get Guidance and Support
If you’re a CASP operating in Liechtenstein or planning to enter the market, it’s essential to stay up-to-date with the latest regulations. Bergt & Partner AG can help you navigate the complex legal requirements and ensure compliance with the new guidelines. Contact us today to learn more about our services and how we can support your business.