Financial Crime World

Liechtenstein Cracks Down on Financial Crime with Zero-Tolerance Policy

Liechtenstein has implemented a comprehensive system to prevent money laundering and terrorist financing, demonstrating its relentless pursuit of combating financial crime.

Compliance Monitoring

The Financial Market Authority (FMA) plays a crucial role in monitoring compliance with anti-money laundering regulations. The FMA evaluates information from the register of beneficial owners, conducts on-site inspections, and follows up on suspicious activity reports to ensure adherence to regulations.

Due Diligence Obligations

Financial institutions, trust service providers, and designated non-financial businesses and professions are required to comply with due diligence obligations, including:

  • Identifying and verifying clients
  • Identifying and verifying beneficial owners
  • Verifying the source of funds
  • Filing suspicious transaction reports
  • Conducting ongoing monitoring

Financial Intelligence Unit (FIU)

The FIU receives and analyzes suspicious activity reports, as well as general threats of money laundering and terrorist financing. If it suspects a criminal offense has been committed, the FIU reports to the Office of the Public Prosecutor.

Prosecution and Sanctions

Prosecution authorities investigate suspected offenses and initiate charges if sufficient evidence is found. The Office of Justice maintains the register of beneficial owners, which provides information on the ownership structure of companies, foundations, and trusts.

International Recognition

Liechtenstein’s anti-money laundering system has been commended by international standards-setting bodies, including MONEYVAL. In its fifth round of evaluations, MONEYVAL praised the country’s strong supervisory approach and progress in improving measures to combat money laundering and terrorist financing.

European Cooperation

Cooperation at the European level is also crucial for Liechtenstein’s AML/ CFT efforts. The country participates in the EU/EEA-level AML/CFT framework and represents itself in the AML Standing Committee, which develops regulatory technical standards and guidelines.

Encouragement to Continue Improving

MONEYVAL encouraged Liechtenstein to continue intensifying its anti-money laundering efforts, noting that only five member jurisdictions achieved similar results. The country has demonstrated its commitment to combating financial crime and will continue to work towards a zero-tolerance policy.