Financial Crime World

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Liechtenstein’s Zero-Tolerance Approach to Anti-Money Laundering

In its pursuit of zero tolerance for money laundering and terrorist financing, Liechtenstein has implemented robust regulations that adhere to international standards. As an EEA member, the country has transposed the 4th and 5th EU Anti-Money Laundering Directives and Regulation (EU) 2015/847 on information accompanying transfers of funds.

Regulatory Framework

The relevant implementation provisions are found in the Law on Professional Due Diligence for the Prevention of Money Laundering, Organised Crime and Financing of Terrorism (Due Diligence Act; SPG), as well as in the Ordinance on Professional Due Diligence for the Prevention of Money Laundering, Organised Crime and Financing of Terrorism (Due Diligence Ordinance; SPV). The requirements governing registers of beneficial owners have been implemented in the Act on the Register of the Beneficial Owners of Legal Entities (VwbPG), which is maintained by the Office of Justice.

Responsibilities

The Financial Market Authority (FMA) Liechtenstein plays a crucial role in monitoring compliance with anti-money laundering regulations and imposing measures and sanctions where violations occur. The FMA evaluates information from the SPG reporting system, conducts on-site inspections, and rigorously follows up on information about any abusive conduct on the financial market.

Key Responsibilities

  • Identification and verification of clients
  • Identification and verification of beneficial owners
  • Clarification of clients’ source of funds and source of wealth
  • Ongoing transaction monitoring
  • Filing of reports of suspicion of money laundering, predicate offences of money laundering, or financing of terrorism

The Financial Intelligence Unit (FIU) receives and analyses reports of suspicion from persons subject to due diligence and public authorities. The FIU also analyses general threats of money laundering, predicate offenses of money laundering, and financing of terrorism.

International Cooperation

Liechtenstein has been actively participating in anti-money laundering 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, which reports regularly to the FATF. In 2021/2022, MONEYVAL reviewed Liechtenstein’s implementation of the FATF Recommendations and evaluated the effectiveness of its anti-money laundering and counter-terrorist financing system.

Progress Report

The report highlights Liechtenstein’s broad and convergent understanding of its money laundering and terrorist financing risks and its strong supervisory approach commensurate to the risks. The country performed very well in comparison with other countries already evaluated, earning a positive rating from MONEYVAL.