EU Acknowledges Liechtenstein's Efforts On Money Laundering

Ulrika Lomas, Tax-news.com, Brussels

26 October 2000

Liechtenstein has been branded a haven for money launderers and has been fighting to preserve its reputation in recent months. However, there was good news for the principality last week, when EU economics and finance ministers meeting in Luxembourg positively acknowledged Liechtenstein's efforts to stem the flow of dirty money and organised crime.

French Finance Minister Laurent Fabius and EU Commissioner Frits Bolkestein both made positive noises towards Liechtenstein Head of Government Mario Frick, who was accompanied to the meeting by Ambassador Prince Nikolaus of Liechtenstein and Hubert Büchel, Head of the Department of National Economy.

According to Mr Frick, EU ministers were agreed that an international effort by the EU was necessary in cracking down on money laundering and organised crime and specific measures to do this were mooted by the ministers, although exactly where these discussions will lead is still unclear.

The acknowledgement by Fabius and Bolkestein, two of Europe's financial heavyweights, of Liechtenstein's endeavours comes just a fortnight after the Financial Action Task Force (FATF) said that the principality was one of seven states on the FATF's list which had shown improvements in fighting money laundering. However, the FATF also said that it would be "premature" to take any names off the list. Mario Frick was reported to be unsurprised that no "de-listing" decisions had been made by the FATF, saying: 'In addition to the measures already introduced by us, the FATF wants to see results in their implementation.' No doubt Mr Fabius and Mr Bolkestein are in agreement.

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