Selected Issues Papers

Liechtenstein as a Financial Center: Liechtenstein

By Thomas Elkjaer

April 28, 2025

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Format: Chicago

Thomas Elkjaer. "Liechtenstein as a Financial Center: Liechtenstein", Selected Issues Papers 2025, 046 (2025), accessed April 30, 2025, https://doi.org/10.5089/9798229010993.018

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Summary

Liechtenstein has strategically positioned itself as a prominent financial center in the wake of the global financial crisis and increasing demands for transparency. The strategy emphasizes transparency, compliance and robust regulatory framework aligned with international standards. The financial sector is outsized compared to its economy, with significant assets under management reflecting its focus on international clients. Unlike many other financial centers, Liechtenstein does not significantly host shell corporations. While systemic risks are mitigated by off-balance sheet and unleveraged operations, the financial center model carries compliance and reputational challenges. Continued vigilance remains paramount for the sustainability of its financial center strategy.

Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Asset and liability management, Balance of payments, Crime, Economic sectors, Financial crises, Financial institutions, Financial regulation and supervision, Financial Sector, Financial statements, Foreign direct investment, Global financial crisis of 2008-2009, Mutual funds, Public financial management (PFM), Revenue administration, Special purpose vehicle, Tax evasion

Keywords: AML/CFT, Anti-money laundering and combating the financing of terrorism (AML/CFT), Asset management companies, Asset under Management, Financial sector, Financial statements, Foreign direct investment, Foreign Direct Investments, Global financial crisis of 2008-2009, International Financial Center, Liechtenstein, Mutual funds, Off-shore, Regulatory Compliance, Special purpose vehicle, Systemic risk, Tax evasion, Tax Evasion and Avoidance

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