Financial centre

The financial services represent a significant if not even the largest economic sector of the economy in Liechtenstein. 14.3 per cent of the persons in gainful employment in Liechtenstein are employed in the financial services sector. Owing to the high added value intensity of this economic area the persons employed in the financial services sector contribute a share of around 30 per cent to the gross domestic product in Liechtenstein. The offered services include in particular the private asset management, the international asset structuring, investment funds and insurance solutions.

In particular the entry into force of the customs agreement with Switzerland in 1924, the take-over of the Swiss Franc as legal currency as well as the creation of specific bases und company law in 1926 proved to be essential for the development of the financial centre Liechtenstein.
 
The last 20 years represented a particularly dynamic period for the financial centre Liechtenstein. The number of banks increased from 3 to 15, new business fields opened up in the field of funds and in the field of insurances. The accession to the European Economic Area in 1995 acted as a catalyst for a series of fundamental changes and also enabled the market access to other countries.

This fast growth in the 90s not just in Liechtenstein, but in the financial services sector worldwide however also increased the risk of the improper use of the financial centre for the purpose of money laundering. The state reacted to this risk with a new law governing mutual judicial assistance in criminal cases, with regularly tightened provisions for duty of care and with a substantial increase in personnel in the supervisory authorities, the state police and the courts. These efforts of the state and the financial service providers in the implementation of the new provisions were consequently recognised by international organisations such as the International Monetary Fund, Washington, the Financial Action Task Force (FATF), Paris and the European Council Committee Moneyval, Strasbourg.

The customers of the financial centre Liechtenstein should be able to rely on the fact that the financial service providers offer high-quality products in line with the international standards and are subject to strict state supervision. At the same time the justified interest of the customers in the protection of their privacy is still to be taken into account.