Liechtenstein: just 193 suspiscious transactions in 2005

Posted on

There are 99 billion euros invested through Liechtenstein. According to the US Government's 2007 International Narcotics Control Strategy Report. Volume 2, Liechtenstein's has

- 16 banks, but the three largest banks account for slightly less than ninety percent of the market;

- three nonbank financial companies;

- 16 public investment companies;

- a number of insurance and reinsurance companies;

- 230 licensed fiduciary companies

- 60 lawyers who serve as nominees for or manage more than 75,000 entities (mostly corporations or trusts) available primarily to nonresidents of Liechtenstein.

In 2005:

- the number of Suspsicious Transation Reports of money laundering decreased by 17.5 percent from the previous year to 193.

- Of these 193 reports, 54% were submitted by banks

- 38% were submitted by professional trustees.

- fraud (45%) and money laundering (27%) remained the most prevalent types of offenses reported on STRs. There is no data for tax evasion.

- 22.3 percent of the beneficial owners indicated in STRs were German nationals, followed by Swiss and U.S. nationals with 14.5 percent each. Austrian, British, and Dutch citizens each accounted for 4.1 percent of beneficial owners indicated in STRs, and Liechtenstein nationals made up only 3 percent of beneficial owners mentioned. In terms of the location of the suspected predicate offense (as mentioned in STRs), Canada and the United States accounted for the most funds, with about $403 million (500 million Swiss francs) and $360 million (450 million Swiss francs) respectively.

As the International Narcotics Control Strategy Report says:

The Government of Liechtenstein has made progress in addressing shortcomings in its anti-money laundering regime. It should continue to build upon the foundation of its evolving anti-money laundering and counterterrorist financing regime.

Liechtenstein should become a party to the 1988 UN Drug Convention and the UN Convention against Transnational Organized Crime.

Per FATF Special Recommendation Nine, Liechtenstein should require reporting of cross-border currency movements. The data should be shared with EFFI, the financial intelligence unit.

Authorities should ensure that trustees and other fiduciaries comply fully with all aspects of the new anti-money laundering legislation and attendant regulations, including the obligation to report suspicious transactions.

The EFFI should be given access to additional financial information.

While Liechtenstein recognizes the rights of third parties and protects uninvolved parties in matters of confiscation, the government should distinguish between bona fide third parties and others.

There appears to be an over-reliance on STRs to initiate money laundering and financial crimes investigations; Liechtenstein law enforcement entities should become more pro-active in this regard.

The GOL should criminalize "negligent money laundering" and should publish the annual number of arrests, prosecutions, and convictions for money laundering.

That's a not a good report.

And remember, they don;t even concern themselves with tax evasion. But then, nor does Leichtenstein since it's not a crime there. .