Prior to conducting financial activities in Liechtenstein, it is crucial to become familiar with the country’s regulations related to business transparency and AML compliance. The goal of this article is to help you learn about the key AML obligations expected from managers of assets and private banks in Liechtenstein.
AML obligations
Fighting fraudulent activities in the financial sector is truly a priority for Liechtenstein. The country’s regulation obliges investment companies and banking institutions to follow this DD procedure:
- Risks observation
- Business profile creation
- Identification and verification of clients’ identities
- Identification and verification of identities of beneficial owners of assets.
In some cases regulators find it necessary to apply stricter DD obligations.
Required documents
To set up a bank account in Liechtenstein clients and beneficial owners are supposed to provide specific information to financial mediators like:
- Date of birth
- Location
- Name
- Citizenship.
In order to verify legal personalities, the following data must be collected:
- Names of companies registered in Liechtenstein
- Legal entity types
- Dates of creation
- Registered offices
- Date and place of legal entities’ state registration
- Extracts from commercial registers
- Names of organizations that present a legal entity in communication with asset managers and banking institutions.
For asset managers and banking institutions registered in Liechtenstein, it is obligatory to gather the following records to establish a business profile:
- Company’s economic status
- The original source of assets kept in deposit accounts
- Which contributors of assets are involved
- What the usage of assets will be.
As for combating money laundering and financial crime in the banking sector, fraudulent activities are deemed a grave offense and are subject to law prosecution.
Legal responsibility
Liechtenstein’s Criminal Code prosecutes all law violators – clients and mediators who are suspected of being involved in trust abuse and fraud. Violations of AML obligations and perpetration of financial crimes are the reasons for legal liability.
Conclusion
Lately, many countries of European Unions started to tighten the AML requirement. Therefore, the best advice for newly-opened businesses in Liechtenstein, for example, is to get professional legal support and monitor AML regulation closely.
COREDO is your perfect choice for this job. Our specialists are highly experienced in the industry of financial services providers in many jurisdictions including Liechtenstein.