LIECHTENSTEIN Law and Practice Contributed by: Matthias Niedermüller, Alexander Milionis and Fabian Rischka, Niedermüller Attorneys-at-Law
not released from their confidentiality obligation (Section 321 of the Civil Procedure Code). Additionally, all attorney–client communication is protected under Liechtenstein law. Lawyers are also entitled to refuse to testify in criminal proceedings (Section 108(1)(1) of the Criminal Procedure Code). Attorney‒client secrecy must also not be circum - vented by seizure of attorney–client communica - tion or other measures. In case of seizure, the documentation may be sealed upon application. In such cases, the seized documents that are subject to attorney‒client privilege are returned based on a court decision. However, an exemption applies where there is reasonable suspicion that an attorney partici - pated in the criminal offence of their client by aiding and abetting or as a co-perpetrator. In such cases, there is no further client‒attorney privilege. Liechtenstein civil law does not recognise the concept of punitive or exemplary damages. Instead, it aims to grant compensation to the damaged party for actual damage and losses suffered from damaging behaviour. There is no intention to legislate for economic punishment of the injuring party. As a result, Liechtenstein courts also refuse to recognise and enforce claims under a foreign public document covering punitive or exemplary damages – given that recognition and enforce - 7. Special Rules and Laws 7.1 Rules for Claiming Punitive or Exemplary Damages
ment would be considered not compliant with the local public order (ordre public). 7.2 Laws to Protect “Banking Secrecy” In its Section 14, the Banking Act (in connec - tion with the corresponding ordinance) provides statutory basis for banking secrecy. This protec - tion also applies to investment firms. The Liech - tenstein Constitutional Court has even qualified this as “material fundamental right” . The members of the governing bodies of such companies, their employees and other persons working for such companies are obliged to main - tain confidentiality with regard to facts that have been entrusted to them or made accessible to them on the basis of business relationships with clients. The duty of confidentiality is unlimited in time (Section 14(1) of the Banking Act). However, the duty of confidentiality does not apply to testimony in criminal proceedings and regarding reporting obligations to supervisory bodies and the Financial Intelligence Unit (FIU), which is installed for reporting suspicions of money laundering (Section 14(2) of the Banking Act). Given that banking secrecy does not apply in criminal proceedings, it is also not an obstacle to investigations in fraud cases. Rather, companies’ bank documents and bank communications that document the suspect as the UBO are regularly seized during criminal investigations as one of the first steps besides freezing such assets. 7.3 Crypto-Assets Liechtenstein already has many years of expe - rience with the regulation of cryptocurrency services and crypto-assets and also offers an attractive company law and tax law. With the Token and Trusted Technology Service Provider
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