LIECHTENSTEIN Law and Practice Contributed by: Lukas-Florian Gilhofer and Mathias Bitschnau, Ospelt & Partner Attorneys at Law Ltd
Within this framework, each authority handles distinct aspects of sanctions implementation and enforce - ment: • the FMA acts as the primary supervisory authority for the financial sector, monitoring sanctions com - pliance at regulated institutions including banks, insurance companies, fund management compa - nies and trustees, and may impose administrative measures such as fines and licence revocations; • the Office of Foreign Affairs shares responsibility at government level for the co-ordinated implementa - tion of international sanctions measures; • the FIU is responsible for receiving and processing suspicious transaction reports and corresponding sanctions reports, and disseminates relevant finan - cial intelligence to competent authorities; and • the government of the Principality of Liechten - stein, acting through the Ministry of Foreign Affairs, issues the sanctions ordinances through which UN and EU restrictive measures are transposed into national law. As such, these authorities are the competent bodies for enforcing sanctions and granting derogations and serve as the primary interlocutors for all sanctions- related issues in Liechtenstein. 2.2 Enforcement 2.2.1 Enforcement Responsibilities In Liechtenstein, responsibility for enforcing sanctions is divided between civil and criminal authorities, each operating within a clearly defined institutional frame - work. Civil Enforcement of Restrictive Measures The FMA is the primary responsible authority. The FMA supervises regulated institutions – including banks, insurance companies, fund management companies, fiduciaries and asset managers – for compliance with applicable sanctions obligations. Where violations are identified, the FMA may impose administrative meas - ures, including: • financial penalties and fines; • formal reprimands and remediation orders; and • suspension or revocation of operating licences.
Administrative breaches of financial sanctions are accordingly investigated and sanctioned by the FMA acting in its capacity as Liechtenstein’s financial regu - latory authority. Criminal Enforcement of Sanctions The Public Prosecutor’s Office of the Principality of Liechtenstein is responsible for initiating and lead - ing criminal proceedings in cases of sanctions viola - tions. As the authority in charge of the investigation, it directs the investigative process. Investigative steps – including searches and seizures – are carried out by: • the National Police of Liechtenstein, acting on the instructions of the Public Prosecutor’s Office; and • the FIU, which provides financial intelligence and supports the identification and analysis of sanc - tions-related offences. Reports and referrals from the FMA or other compe - tent authorities may form the basis for criminal pro - ceedings initiated by the Public Prosecutor’s Office where the circumstances of a violation warrant crimi - nal rather than merely administrative sanction. 2.2.2 Breaching Sanctions Violations of sanctions provisions constitute a criminal offence in Liechtenstein under the International Sanc - tions Act ( Internationales Sanktionsgesetz , ISG, LGBl. 2009 No 41). At the criminal level, the ISG criminalises breaches of applicable sanctions obligations, regardless of wheth - er the underlying measure originates from a UN Secu - rity Council resolution or from EU law transposed into Liechtenstein law by government ordinance. Potential penalties for natural persons include: • custodial sentences of up to three years; and • monetary penalties. Legal persons may be subject to fines. At the civil and administrative level, the FMA may impose administrative sanctions against regulated institutions that breach or circumvent applicable financial sanctions. These include:
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