Due diligence

Due Diligence

The Principality of Liechtenstein places the highest importance on upholding its good reputation as a prime location for financial services. It is for this reason that in recent years the legal conditions have been created to effectively prevent funds of doubtful origin from entering the Principality of Liechtenstein.

The Due Diligence Act (Sorgfaltspflichtgesetz) helps to prevent Liechtenstein from being misused as a financial centre for the financing of international terrorism or money laundering for funds of a criminal origin.

Once entering a business relationship all financial intermediaries, inter alia banks, trustees and attorneys are obliged to identify the contractual party, the beneficiary and the origin of the assets brought in alongside the scope for prospective business relationship.
However, strict and legitimate confidentiality of the local banks and professional secrecy of trustees and attorneys make it practically impossible for non-authorised persons or officials to obtain the information over the Liechtenstein business entities.