LIECHTENSTEIN Law and Practice Contributed by: Christian Inmann and Markus Stelzl, Inmann Stelzl & Partner Attorneys at Law Partnership
highly fact-specific and must be assessed on a case- by-case basis. 2.10 Significant Enforcement Actions The Liechtenstein FMA closely supervises the finan - cial market to identify unauthorised activities. If it becomes aware of financial services being offered without the required authorisation, the FMA can take a range of enforcement actions. These include order - ing the immediate cessation of the activity, impos - ing administrative sanctions, issuing public warnings, and, where necessary, involving criminal prosecution authorities. To enhance market transparency and investor protection, the FMA also maintains a pub - licly accessible warning list and invites the public to report suspicious or potentially unlawful financial ser - vice providers. 2.11 Implications of Additional, Non- Financial Services Regulations In Liechtenstein, fintechs (including crypto-asset ser - vice providers and robo-advisers) are subject not only to financial regulation but also to a broad set of non- financial services regulations. These include rules on cybersecurity obligations such as DORA and NIS2, data protection under the GDPR, as well as standards for marketing and software development. Together, these frameworks govern the use of personal data, the resilience of digital systems, the functioning of automated tools, and advertising practices. 2.12 Review of Industry Participants by Parties Other Than Regulators Industry participants in Liechtenstein are typically subject to oversight by external auditors, IT secu - rity experts and industry associations (if available for the specific industry). Further, licensed firms are also required to undergo statutory audits and specific regulatory reviews. Liechtenstein, in particular, has industry bodies for blockchain-related services, which promote best practices and can give guidance. 2.13 Conjunction of Unregulated and Regulated Products and Services In Liechtenstein, some industry participants do offer unregulated products or services alongside regulated
ones, for example, DeFi-related services, educational services or software solutions, together with regulated products. These offerings can be structured either within the same legal entity or through separate affiliated com - panies, depending on risk, liability and regulatory con - siderations. The FMA generally allows this practice as long as it is clear to customers which services are regulated and which are not, and which entity pro - vides which services. 2.14 Impact of AML and Sanctions Rules Anti-money laundering (AML) and sanctions regula - tions have a significant impact on both regulated and certain unregulated fintechs, reflecting the jurisdic - tion’s strong focus on financial integrity. Regulated fintechs, such as crypto-asset service pro - viders and payment institutions, are fully subject to the Due Diligence Act (DDA) and related ordinances, which implement EU-aligned AML/CFT and sanctions standards. These firms must carry out, inter alia, cus - tomer due diligence, transaction monitoring, sanc - tions screening and reporting of suspicious activities, often under close supervision by the FMA. Unregulated fintechs may also fall within the scope of AML and sanctions rules if they perform activities covered by the DDA. As a result, AML compliance is a key regulatory focus in Liechtenstein across the fintech sector, regardless of licensing status. Unregulated fintechs may further fall indirectly under AML and sanctions rules, if the fintech is structured as holding company, which has a Liechtenstein trustee as mandatory board member. Liechtenstein trustees are themselves subject to AML and sanctions rules and also have to follow these if they are part of the management of a fintech. 2.15 Financial Action Task Force (FATF) Standards In Liechtenstein, AML and sanctions rules are closely aligned with the standards set by the FATF. The DDA and related ordinances implement the FATF’s recom - mendations into national law, covering customer due
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