Liechtenstein Country Summary

FATF Status

Liechtenstein is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Liechtenstein was undertaken in 2022. According to that Evaluation, Liechtenstein was deemed Compliant for 11 and Largely Compliant for 26 of the FATF 40 Recommendations. It was deemed Highly effective for 0 and Substantially Effective for 5 of the Effectiveness & Technical Compliance ratings.

Liechtenstein experiences low levels of crime and corruption, with human trafficking and drug-related issues being present but limited in scale. The government actively combats organized crime through effective governance, a transparent judicial system, and robust law enforcement, while also addressing financial crimes and enhancing banking transparency to mitigate the risks associated with being a potential tax haven.

Liechtenstein has a high-income economy with one of the highest GDP per capita globally, primarily driven by its strong financial sector and diverse industrial base, which includes electronics, pharmaceuticals, and precision instruments. The country enjoys a favorable investment climate, bolstered by political stability and a commitment to regulatory improvements, moving away from its previous tax haven image to attract legitimate business investments. Additionally, its low corporate tax rates and integration with the European Economic Area enhance its appeal to foreign investors, while the economy remains stable with low unemployment and a significant number of registered companies relative to its population.