|
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2012:
The Principality of Liechtenstein has a well-developed offshore
financial services sector, liberal incorporation and corporate
governance rules, relatively low tax rates, and a tradition of strict
bank secrecy. All of these conditions significantly contribute to the
ability of financial intermediaries in Liechtenstein to attract both
licit and illicit funds from abroad. Liechtenstein’s financial services
sector includes 17 banks, 107 asset management companies, 40
insurance companies and 71 insurance intermediaries, 33
pension schemes and six pension funds, 392 trust companies and
21 fund management companies with approximately 469
investment undertakings (funds), and 637 other financial
intermediaries. The three largest banks control 85% of the market.
In recent years the Principality has made continued progress in its
efforts against money laundering as banking secrecy has been
softened to allow for greater cooperation with other countries to
identify tax evasion. The Liechtenstein Government has
recognized the OECD standard as the global standard in tax
cooperation and has renegotiated a series of double taxation
agreements to include administrative assistance on tax evasion
cases.
Do Financial Institutions engage in currency transactions related
to international narcotics trafficking that include significant
amounts of US currency; currency derived from illegal sales in the
U.S.; or that otherwise significantly affect the U.S.: NO
Criminalization of Money Laundering:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
KYC covered entities: Banks, securities and insurance brokers;
money exchangers or remitters; financial management firms,
investment companies, and real estate companies; dealers in high
value goods; insurance companies; lawyers; money exchangers
or remitters; casinos; the Liechtenstein Post Ltd.; and individuals
acting as intermediaries in bank lending, money transactions,
trading of currencies, or dealing in matters of wealth management
and investment advice
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: 328 in 2010
Number of CTRs received and time frame: Not applicable
STR covered entities: Banks, securities and insurance brokers;
money exchangers or remitters; financial management firms,
investment companies, and real estate companies; dealers in high
value goods; insurance companies; lawyers; money exchangers
or remitters; casinos; the Liechtenstein Post Ltd.; and individuals
acting as intermediaries in bank lending, money transactions,
trading of currencies, or dealing in matters of wealth management
and investment advice
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: Seven from October 19, 2010 to October 31, 2011
Convictions: None from October 19, 2010 to October 31, 2011
Records exchange mechanism:
With U.S.: MLAT: YES Other mechanisms: YES
With other governments/jurisdictions: YES
Liechtenstein is a member of the Council of Europe Select
Committee of Experts on the Evaluation of Anti-Money Laundering
Measures and the Financing of Terrorism (MONEYVAL), a
Financial Action Task Force-style regional body. Its most recent
mutual evaluation can be found here: http://www.coe.
int/t/dghl/monitoring/moneyval/Countries/Liechtenstein_en.asp
Enforcement and implementation issues and comments:
Because there are no laws for declaration of currency and
monetary instruments, Liechtenstein’s authorities cannot
effectively conduct bulk cash investigations.
Liechtenstein has shown an important effort to improve
deficiencies in combating money laundering. The 2010 reporting
year saw a new record high number of suspicious activity reports
(SARs), an increase of 39.6% over 2009. Nearly half (47.6%) of
the SARs were based on fraud concerns; 8.8% on money
laundering; and 30.6% on the other enumerated offense
categories. In 2010, 83.8% of Liechtenstein’s SARs were
forwarded to the Office of the Public Prosecutor. No SARs were
submitted for suspected terrorist financing. The present SAR
reporting requirements do not clearly indicate whether attempted
transactions relating to funds used in connection with terrorism
are covered.
In practice, many of the customer characteristics often considered
high-risk in other locales, including non-resident and trust or
asset management accounts, are considered routine in
Liechtenstein, subject only to normal customer due diligence
procedures. Liechtenstein also decided not to include entities with
bearer shares, trusts and foundations, or entities registered in
privately-held databases in the high-risk category. Liechtenstein
should consider reviewing whether this decision makes its
financial system more vulnerable to illegal activities.
There are reportedly no abuses of non-profit organizations,
alternative remittance systems, offshore sectors, free trade
zones, bearer shares, or other specific sectors.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
US State Dept Trafficking in Persons Report 2011
(introduction):
No report available
US State Dept Terrorism Report 2009
No report available
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
Einheit für Finanzinformationen (EFFI)
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2012:
The Principality of Liechtenstein has a well-developed offshore
financial services sector, liberal incorporation and corporate
governance rules, relatively low tax rates, and a tradition of strict
bank secrecy. All of these conditions significantly contribute to the
ability of financial intermediaries in Liechtenstein to attract both
licit and illicit funds from abroad. Liechtenstein’s financial services
sector includes 17 banks, 107 asset management companies, 40
insurance companies and 71 insurance intermediaries, 33
pension schemes and six pension funds, 392 trust companies and
21 fund management companies with approximately 469
investment undertakings (funds), and 637 other financial
intermediaries. The three largest banks control 85% of the market.
In recent years the Principality has made continued progress in its
efforts against money laundering as banking secrecy has been
softened to allow for greater cooperation with other countries to
identify tax evasion. The Liechtenstein Government has
recognized the OECD standard as the global standard in tax
cooperation and has renegotiated a series of double taxation
agreements to include administrative assistance on tax evasion
cases.
Do Financial Institutions engage in currency transactions related
to international narcotics trafficking that include significant
amounts of US currency; currency derived from illegal sales in the
U.S.; or that otherwise significantly affect the U.S.: NO
Criminalization of Money Laundering:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
Know-your-customer (KYC) rules:
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
KYC covered entities: Banks, securities and insurance brokers;
money exchangers or remitters; financial management firms,
investment companies, and real estate companies; dealers in high
value goods; insurance companies; lawyers; money exchangers
or remitters; casinos; the Liechtenstein Post Ltd.; and individuals
acting as intermediaries in bank lending, money transactions,
trading of currencies, or dealing in matters of wealth management
and investment advice
Suspicious Transaction Reporting (STR) Requirements:
Number of STRs received and time frame: 328 in 2010
Number of CTRs received and time frame: Not applicable
STR covered entities: Banks, securities and insurance brokers;
money exchangers or remitters; financial management firms,
investment companies, and real estate companies; dealers in high
value goods; insurance companies; lawyers; money exchangers
or remitters; casinos; the Liechtenstein Post Ltd.; and individuals
acting as intermediaries in bank lending, money transactions,
trading of currencies, or dealing in matters of wealth management
and investment advice
Money Laundering Criminal Prosecutions/Convictions:
Prosecutions: Seven from October 19, 2010 to October 31, 2011
Convictions: None from October 19, 2010 to October 31, 2011
Records exchange mechanism:
With U.S.: MLAT: YES Other mechanisms: YES
With other governments/jurisdictions: YES
Liechtenstein is a member of the Council of Europe Select
Committee of Experts on the Evaluation of Anti-Money Laundering
Measures and the Financing of Terrorism (MONEYVAL), a
Financial Action Task Force-style regional body. Its most recent
mutual evaluation can be found here: http://www.coe.
int/t/dghl/monitoring/moneyval/Countries/Liechtenstein_en.asp
Enforcement and implementation issues and comments:
Because there are no laws for declaration of currency and
monetary instruments, Liechtenstein’s authorities cannot
effectively conduct bulk cash investigations.
Liechtenstein has shown an important effort to improve
deficiencies in combating money laundering. The 2010 reporting
year saw a new record high number of suspicious activity reports
(SARs), an increase of 39.6% over 2009. Nearly half (47.6%) of
the SARs were based on fraud concerns; 8.8% on money
laundering; and 30.6% on the other enumerated offense
categories. In 2010, 83.8% of Liechtenstein’s SARs were
forwarded to the Office of the Public Prosecutor. No SARs were
submitted for suspected terrorist financing. The present SAR
reporting requirements do not clearly indicate whether attempted
transactions relating to funds used in connection with terrorism
are covered.
In practice, many of the customer characteristics often considered
high-risk in other locales, including non-resident and trust or
asset management accounts, are considered routine in
Liechtenstein, subject only to normal customer due diligence
procedures. Liechtenstein also decided not to include entities with
bearer shares, trusts and foundations, or entities registered in
privately-held databases in the high-risk category. Liechtenstein
should consider reviewing whether this decision makes its
financial system more vulnerable to illegal activities.
There are reportedly no abuses of non-profit organizations,
alternative remittance systems, offshore sectors, free trade
zones, bearer shares, or other specific sectors.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
US State Dept Trafficking in Persons Report 2011
(introduction):
No report available
US State Dept Terrorism Report 2009
No report available
____________________________________________________
Links:
Worldwide AML Legislation (International Bar Association)
Einheit für Finanzinformationen (EFFI)
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if any
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| LIECHTENSTEIN |
| KnowYourCountry |
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| Last Updated: 16 April 2012 |