Financial Crime World

Financial Sector Remains Stable Despite Challenges: Liechtenstein’s FMA Cracks Down on Fraud

Despite facing a series of international challenges, Liechtenstein’s financial sector has remained stable due to the effective enforcement policies pursued by the Financial Market Authority (FMA). The authority’s Economic Report 2023 reveals that market abuse has been curbed and customers protected through its rigorous regulatory efforts.

Effective Enforcement Policies

The FMA’s commitment to protecting customers and punishing violations has played a significant role in maintaining Liechtenstein’s financial sector stability. The authority was forced to open:

  • 88 administrative proceedings or administrative criminal proceedings
  • A total of 192 ongoing proceedings or preliminary investigations were concluded
  • A whopping 1,489,500 Swiss francs in fines were imposed for violations of banking law, market manipulation, insider trading, and transactions involving clone companies

Notable Cases

In one notable case, a fine amounting to 500,000 Swiss francs was levied against a legal entity. Furthermore, the FMA lodged:

  • 9 criminal complaints with the responsible public prosecutor’s office, citing suspicion of:
    • Market abuse
    • Accepting deposits without necessary authorization
    • Insider trading
    • Unlawful disclosure of insider information
    • Concealment of material facts
    • Fraud related to clone companies
    • Violation of trademark protection
    • Activity without registration under the Token and Trusted Technology Service Provider Act

Evolution of Regulations

In addition to its enforcement efforts, the FMA has been tasked with further developing financial market regulations on behalf of the government. New regulations have been drafted for:

  • Securities trading
  • Digitalization
  • Crypto-currencies trading

A revised version of the Financial Market Act is set to be finalized by January 1, 2025.

Conclusion

The FMA’s commitment to protecting customers and punishing violations has undoubtedly played a significant role in maintaining Liechtenstein’s financial sector stability. As the authority continues to evolve its regulations to address emerging challenges, investors can rest assured that their interests are being safeguarded.