Financial Crime World

Liechtenstein Tightens Grip on Financial Crimes and Terrorism Financing

Strengthening Measures Against Money Laundering and Terrorist Financing

Liechtenstein has taken significant steps to combat financial crimes and terrorism financing, demonstrating its commitment to implementing the highest standards of anti-money laundering (AML) and combating the financing of terrorism (CFT). The country’s authorities have implemented a zero-tolerance policy towards these criminal activities.

Implementation of National Laws and Regulations

Under the 4th and 5th EU Anti-Money Laundering Directives and Regulation (EU) 2015/847, Liechtenstein has transposed the relevant implementation provisions into its national laws. The following regulations are in place:

  • Law on Professional Due Diligence for the Prevention of Money Laundering, Organised Crime, and Financing of Terrorism (Due Diligence Act; SPG)
  • Ordinance on Professional Due Diligrence for the Prevention of Money Laundering, Organised Crime, and Financing of Terrorism (Due Diligence Ordinance; SPV)

These regulations set out the requirements for:

  • Financial institutions
  • Trust service providers
  • Other designated non-financial businesses and professions (DNFBPs)

The Role of the Financial Intelligence Unit (FIU)

The FIU is responsible for:

  • Receiving and analyzing reports of suspicion from persons subject to due diligence and public authorities
  • Analyzing general threats of money laundering, predicate offenses of money laundering, and financing of terrorism

Monitoring Compliance by the FMA Liechtenstein

The Financial Market Supervisor (FMA) Liechtenstein monitors compliance with AML/CFT obligations by:

  • Evaluating information from the SPG reporting system
  • Conducting on-site inspections
  • Following up on information about any abusive conduct on the financial market

International Cooperation and Evaluation

Liechtenstein has been actively participating in AML/CFT efforts for decades, guided by the international standards of the Financial Action Task Force (FATF). The country is a member of MONEYVAL, an FATF-style regional body based at the Council of Europe, since 1999.

In 2021/2022, implementation of the FATF Recommendations in Liechtenstein was reviewed by MONEYVAL as part of its fifth round of evaluations. According to the latest report published by MONEYVAL on June 29, 2022, Liechtenstein has made significant progress in improving its measures to combat money laundering and financing of terrorism.

Outcomes

  • Liechtenstein’s AML/CFT system is considered robust, with a broad and convergent understanding of its money laundering and terrorist financing risks.
  • The country performed well compared to other evaluated countries and will be subject to the regular MONEYVAL follow-up process instead of the enhanced process.
  • Liechtenstein was rated “compliant” or “largely compliant” with 37 out of 40 FATF Recommendations.

Representation in the AML CFT Standing Committee

The FMA represents Liechtenstein in the AML CFT Standing Committee (AMLSC) at the EU/EEA level, which develops regulatory technical standards and guidelines to implement the requirements of the 4th and 5th EU Anti-Money Laundering Directives and Regulation (EU) 2015/847.