Liechtenstein In Race To Beat FATF Deadline

by Ulrika Lomas, Tax-News.com, London

26 July 2001

The elation of June 22nd has evaporated in Liechtenstein over the past month according to reports, leaving in its place a sense of silent panic. In order to secure removal from the Financial Action Task Force's money laundering blacklist, Liechtenstein's trustees agreed to the FATF's tight deadline for the disclosure of client data. However, there are fears that time is running out.

Under the agreement, 50% of all client data must be disclosed by the end of this month, which may prove to be a tall order for the Liechtenstein financial services sector. However, when the resolution was passed in mid-May, the Association of Trustees was pursuing one aim doggedly, namely to persuade the FATF delegation that duty of care was functioning well in Liechtenstein, and was seemingly willing to promise anything.

When the country was removed from the FATF blacklist in June, the Prime Minister, Otmar Hasler, praised the 'immense efforts' that had been made by the sector to update anti-money laundering legislation, although some at the time criticised the country's efforts as mere 'window dressing'. The truth remains to be seen, but from the pace of the frantic activity taking place in Liechtenstein at the moment, it seems that despite the promises of the Association of Trustees, a lot of the legwork still remains to be done.

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