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Revision as of 17:25, 25 December 2024 by TheBritinator (talk | contribs) (→See also: Add)(diff) ← Previous revision | Latest revision (diff) | Newer revision → (diff) Alleged money laundering in LiechtensteinThe 1999–2001 Liechtenstein financial crisis was instigated by the German Federal Intelligence Service in 1999 by accusing various banks, politicians and judges within Liechtenstein of cooperating with organized crime to promote money laundering. The crisis led to Liechtenstein being blacklisted by the Financial Action Task Force in 2000. Following reforms to Liechtenstein's financial sector, the blacklist was lifted the following year.
Crisis
On 8 November 1999, German newspaper Der Spiegel published a report by the Federal Intelligence Service that accused various, banks, politicians and judges within Liechtenstein of cooperating with organized crime such as the Russian mafia and drug cartels to promote money laundering. The same day, Prime Minister of Liechtenstein Mario Frick held a press conference and criticized the report as "dubious and unfair". In June 2000, Liechtenstein was blacklisted by the Financial Action Task Force.
The Liechtenstein government commissioned Kurt Spitzer to investigate the allegations. He refuted them by arguing that the level of financial crime within Liechtenstein was on the same median as the rest of Europe, and that most of the money laundered within the country had previously been laundered elsewhere. Despite this, Spitzer's report highlighted organizational deficiencies in the authorities, particularly in the provision of legal assistance.
As a result of the crisis, Liechtenstein sought to reform its financial sector. In 2000 a legal assistance law was passed and the criminal law and due diligence laws were revised. Previously, trustees and lawyers could open accounts in Liechtenstein banks with the holder remaining anonymous. In addition, the courts of Liechtenstein, the financial police and financial market supervision were expanded, many of whom specialized in combating organized crime. On 23 June 2001, the Financial Action Task Force removed Liechtenstein from the blacklist.
Aftermath
The crisis greatly damaged the Liechtenstein economy, and caused a stock market slump within the country. The number of companies based in Liechtenstein fell from 84,000 in 2000 to 80,000 in 2002, representing a loss of an estimated 16 billion CHF. Liechtenstein adopted the European Union's third iteration of the anti-money laundering directive (AMLD III) in 2005. However, the country again came under pressure in the 2008 Liechtenstein tax affair, which forced further reforms to the financial sector and the expansion of tax treaties with individual countries.
See also
References
- ^ "Schwere Vorwürfe gegen Liechtenstein". Liechtensteiner Volksblatt (in German). 8 November 1999. Retrieved 25 December 2024.
- ^ Lussy, Hanspeter (31 December 2011). "Finanzplatzkrise". Historisches Lexikon des Fürstentums Liechtenstein (in German). Retrieved 25 December 2024.
- ^ Merki, Christoph Maria (31 December 2011). "Finanzdienstleistungen". Historisches Lexikon des Fürstentums Liechtenstein (in German). Retrieved 25 December 2024.
- ""Wieder ein gleichwertiger Partner der Völkergemeinschaft". Liechtensteiner Volksblatt (in German). 23 June 2001. Retrieved 25 December 2024.
