Financial Crime World

Banking Fraud Prevention: A Top Priority in Liechtenstein’s Monetary System

The Financial Market Authority (FMA) of Liechtenstein has made banking fraud prevention a core aspect of its regulatory supervision, ensuring investor confidence and protecting creditors.

Regulatory Supervision

To achieve this goal, the FMA exercises close monitoring over bank branches and representative offices, scrutinizing their adherence to regulations outlined in key statutes such as:

  • Banking Act
  • Banking Ordinance
  • Due Diligence Act (DDA)
  • Financial Market Authority Act (FMA Act)
  • Financial Conglomerates Act (FCA)
  • Payment Services Act (PSA)

The FMA’s supervisory activities are designed to identify potential vulnerabilities and ensure that banks maintain a solid financial foundation. Specifically, the authority:

  • Verifies the liquidity and capital of banks
  • Evaluates their risk management strategies
  • Assesses the professional qualifications of key personnel

Swift Action Against Regulatory Breaches

In cases where regulatory breaches or grievances are detected, the FMA takes swift action to rectify the situation and restore order. In collaboration with the Office of the Public Prosecutor, the FMA works tirelessly to:

  • Protect consumers
  • Maintain public trust in the financial system

Public Participation

The active involvement of the population is also crucial in preventing banking fraud. The FMA welcomes reports from citizens regarding unlicensed companies or other concerns, ensuring that these allegations are thoroughly investigated and addressed.

Conciliation Board: A Neutral Platform for Resolving Disputes

In addition to its supervisory responsibilities, Liechtenstein’s Financial Services Conciliation Board (FSCB) provides a neutral platform for resolving disputes between clients and financial institutions. The FSCB is an independent body that:

  • Mediates conflicts
  • Strives to reach fair settlements in a transparent and impartial manner

The FSCB operates under the auspices of the Financial Services Conciliation Board Ordinance (FSCBO), which governs its organization, powers, and procedures. By providing a conduit for resolving disputes, the FSCB:

  • Helps maintain trust in the financial system
  • Ensures that client interests are adequately protected