Liechtenstein Makes Significant Progress in Combating Money Laundering and Terrorist Financing

Recent Evaluation by the Committee of Experts

In a recent evaluation by the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL), Liechtenstein has been recognized for its significant progress in combating money laundering and terrorist financing.

Strong Supervisory Approach and Risk-Based Supervision

According to the report, Liechtenstein has a broad and convergent understanding of its money laundering and terrorist financing risks, and a strong supervisory approach is in place. The country’s Financial Market Authority (FMA) has been operating a consistent risk-based supervision, following a significant strengthening of its Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) supervisory strategy and organization in 2018.

Effective Implementation of Legal Framework

The evaluation report also praised Liechtenstein for its effective implementation of its legal framework to prevent money laundering and terrorist financing. The country scored above average in five of the eleven subject areas examined, with no significant gaps identified in these areas.

Recommendations from MONEYVAL

MONEYVAL acknowledged that Liechtenstein has made progress in strengthening its AML/CFT supervisory strategy and organization, and encouraged the country to continue this approach. The report also commended the FMA for its effective risk-based supervision, which includes regular monitoring of financial institutions and implementation of remedial actions and sanctions when necessary.

Commitment to International Standards

Liechtenstein’s commitment to combating money laundering and terrorist financing is part of its efforts to fulfill international standards set by the Financial Action Task Force (FATF). The country is a member of MONEYVAL, one of nine FATF-style regional bodies that promote the effective implementation of AML/CFT measures globally.

Compliance with FATF Recommendations

The evaluation report highlights Liechtenstein’s compliance with 37 out of 40 FATF Recommendations, with no non-compliant ratings. This achievement demonstrates the country’s commitment to ensuring that its financial sector is free from money laundering and terrorist financing activities.

Global Implications

Liechtenstein’s progress in combating money laundering and terrorist financing has important implications for the global fight against these threats. The country’s efforts demonstrate that effective implementation of AML/CFT measures can be achieved through a combination of strong supervisory oversight, robust legal framework, and commitment to international standards.

Ongoing Efforts

As part of its ongoing efforts to combat money laundering and terrorist financing, Liechtenstein will continue to work with MONEYVAL and other international organizations to ensure that its financial sector remains a safe and secure environment for businesses and individuals.