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.
Governments of many EU countries have been tightening their AML regulations recently. Therefore, those planning on starting a business in Europe are highly advised to seek professional legal advice on AML regulation in Lichtenstein. IQ Decision UK can provide you with an individual consultation on the regulation of financial activities in Liechtenstein & render legal aid in opening a business in Liechtenstein.
