Money Laundering Reports Doubled In Liechtenstein Last Year

by Ulrika Lomas, Tax-News.com, Brussels

08 February 2002

According to Liechtenstein Prime Minister, Otmar Hasler, more than double the amount of suspected money laundering transactions were reported in 2001 than in the previous year.

Following the jurisdiction's inclusion on the Financial Action Task Force's list of countries considered uncooperative in the fight against money laundering, the government took measures to increase reporting of suspicious transactions, beef up the regulation of financial services sector, and put an end to anonymous bank accounts, which resulted in its removal from the blacklist last June.

The Financial Intelligence Unit has attributed the 158 reports received from the banking sector (up from 67 in 2000) to the new tougher controls, rather than to an increase in money laundering activity in the jurisdiction.

Prime Minister Hasler heaped praise on the financial sector and its regulator this week, saying: 'This trend is encouraging and must continue. The financial services industry as a whole has increased its internal compliance measures and is applying them in a targeted manner.'

Despite these encouraging words, however, head of the Financial Intelligence Unit, Michael Lauber, believes that there is still progress to be made. Speaking earlier this week, he revealed that despite the increased reporting figures, only 6 of the jurisdiction's 17 registered banks had registered concerns regarding suspicious transactions, and a mere 20 of the country's 645 investment trusts had made reports.

'Does that mean that they have nothing to report, or that they're hiding something?' He speculated. 'That's a question that will be answered in time.'

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