Private Banking & AML in Liechtenstein

Those planning on carrying out financial activities in Liechtenstein should pay particular attention to ensuring their business’ transparency & compliance with AML rules. This article describes the key AML requirements private banks & asset managers in Liechtenstein must adhere to.

AML Requirements 

Liechtenstein pays a lot of attention to combating fraudulent activities in the financial sector.  Liechtenstein’s regulatory regime requires banking institutions & investment companies to adhere to the following DD procedure:

• identifying & verifying clients’ identities;
• identifying & verifying identities of beneficial owners of assets;
• risks monitoring;
• creating a business profile. 

In some cases, more rigorous DD requirements may be applicable.

Documentation Requirements

Setting up a bank in Liechtenstein involves having financial mediators gather specific  information about beneficial owners & clients, such as:

• dates of birth;
• locations;
• names;
• citizenships.

Verifying legal personalities requires gathering the following data:

• names of Liechtenstein-registered companies;
• kinds of legal entities;
• creation dates;
• registered offices;
• when & where legal entities were entered into a state register;
• extracts from commercial registers.
• names of organizations interacting with banking institutions & asset managers on a legal entity’s behalf.

Establishing business profiles requires Liechtenstein-registered wealth managers & banking institutions to gather this data:

• a company’s economic situation;
• origin of assets held in deposit accounts;
• what business assets’ actual contributors are involved in;
• how assets are going to be used.

When it comes to combating crime in the banking sector & rendering financial services in Europe, trust abuse & fraud are considered offenses & dealt with accordingly.

Responsibility

Mediators & clients suspected of engaging in fraudulent activities can be prosecuted pursuant to Liechtenstein’s Criminal Code. They may also be held responsible for non-compliance with AML regulations or perpetrating financial crimes.