Tighter Banking Supervision in Liechtenstein: Ensuring Compliance and Integrity

Enhanced Oversight to Maintain Financial Norms

In a bid to reinforce adherence to financial regulations, the Banking Division of the Financial Market Authority (FMA) in Liechtenstein has stepped up its oversight on banks and investment firms operating within the principality. This proactive approach aims to detect potential violations at an early stage.

Thorough Examination and Ongoing Monitoring

The division conducts a thorough examination of submitted documents as part of the licensing procedure, coupled with ongoing monitoring through regular reports and direct communication with bank boards and management. This ensures that any non-compliance issues are promptly addressed.

Key Elements of Banking Supervision

• Document Examination: A thorough review of submitted documents is conducted to assess compliance levels.
• Regular Reports and Direct Communication: Banks and investment firms must submit regular reports and engage in direct communication with the FMA.
• External Audit Reports: The Banking Supervision Section relies heavily on external audit reports to evaluate compliance.

Swift Action for Non-Compliance

In cases where legal infractions are discovered, the FMA takes swift action to restore order and ensure a lawful state of affairs. This may involve:

• Demands for Information and Documents: The FMA can demand information and documents from supervised entities and their auditors.
• Extraordinary Audits: The FMA can conduct its own audits or accompany external ones as necessary.
• Decrees and Decisions: The FMA can issue decisions, decrees, and declaratory decrees to rectify non-compliance.

Maintaining Integrity and Reputation

The FMA’s enhanced focus on compliance procedures is a significant step towards maintaining the integrity of Liechtenstein’s banking sector and upholding its reputation as a responsible financial hub.