LIECHTENSTEIN Law and Practice Contributed by: Bernhard Rankl, Moritz Blasy and Nicolai Binkert, Schurti Partners Attorneys at Law Ltd
Suspicious Activity Reporting (SAR) If a Liechtenstein bank identifies suspicious activity, a report must be filed with the Liechten - stein Financial Intelligence Unit (FIU), the central authority responsible for receiving and analys - ing reports of suspected money laundering or terrorist financing in Liechtenstein. Suspicious activity reports (SARs) must be submitted with - out informing the client in order to ensure con - fidentiality and to avoid tipping off the potential perpetrator. Record-Keeping The information and documents collected by a Liechtenstein bank in the course of carrying out its due diligence requirements have to be retained for at least ten years after the end of the relationship or the execution of a transaction. These records must be accessible to regulators and law enforcement authorities upon request, ensuring transparency and traceability. Internal Controls and Training Given the complexity of the AML/CTF regula - tions, banks must implement internal policies and controls to ensure compliance with the AML/CTF requirements. These policies and con - trols include: • the appointment of a compliance officer responsible for overseeing the implementa - tion of AML/CTF measures and liaising with the FMA and the FIU; • regular staff training to ensure that employees are properly trained on AML/CTF require - ments, in particular on how to detect suspi -
Cross-Border Co-operation and Information Sharing As mentioned above, Liechtenstein’s financial market has a strong emphasis on international business, so cross-border co-operation is key for Liechtenstein. As a result, Liechtenstein works closely with other EEA and FATF coun - tries to ensure a co-ordinated approach to finan - cial crime – eg, by exchanging information with foreign counterparts when investigating cross- border money laundering or terrorist financing activities. It is also a member of the Egmont Group, which further promotes co-operation between FIUs worldwide. Virtual Assets and Fintech Regulation In line with EU and FATF guidelines, Liechten - stein has also extended its AML/CTF require - ments to the virtual asset sector. Virtual asset service providers, which are subject to the Token and Trusted Technology Service Provider Act, must comply with the same AML/CTF rules as traditional financial institutions. This includes customer identification, transaction monitor - ing and suspicious activity reporting. Given Liechtenstein’s progressive stance on fintech and blockchain technology, these regulations ensure that the growing sector operates trans - parently and mitigates the risk of abuse for illicit purposes. 6. Depositor Protection 6.1 Deposit Guarantee Scheme (DGS) Liechtenstein’s deposit guarantee scheme is governed by the Deposit Guarantee and Inves - tor Compensation Act ( Einlagensicherungs- und Anlegerentschädigungsgesetz EAG) and the Deposit Guarantee and Investor Compen - sation Ordinance ( Einlagensicherungs- und Anlegerentschädigungsverordnung EAV) trans -
cious activities; and • independent audits.
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