Financial services represent an important economic sector in Liechtenstein, but not the largest. 14.3% of persons employed in Liechtenstein are in the financial services sector. Due to the high added value intensity of this economic sector, persons employed in the financial services sector contribute a share of about 30% to the Liechtenstein gross domestic product. The services offered include in particular private asset management, international asset structuring, investment funds, and insurance solutions.

Especially significant for the development of the Liechtenstein financial center were the entry into force of the Customs Union with Switzerland in 1924, the adoption of the Swiss franc as the legal currency, and the creation of specific corporate legal foundations in 1926. The last 15 years have been a particularly dynamic period for the Liechtenstein financial center. The number of banks increased from 3 to 16, and new fields of business have opened up in the funds and insurance sectors. The accession to the European Economic Area in 1995 acted as a catalyst for a series of fundamental changes and made access to the markets of other countries possible.

But this fast growth in the 1990’s – not only in Liechtenstein, but in the financial services sector worldwide – also increased the risk of abuses of the financial center for the purpose of money laundering. The State reacted to this risk with a new Law on Mutual Legal Assistance in Criminal Matters, stricter due diligence provisions, and a massive staff expansion of the supervisory authorities, the National Police, and the courts. These efforts of the State and of the financial service providers in implementing the new provisions were subsequently recognized by international organizations such as the International Monetary Fund in Washington, the Financial Action Task Force (FATF) in Paris, and the Moneyval committee of the Council of Europe in Strasbourg.

The clients of the Liechtenstein financial center must be able to rely on financial service providers offering high-quality products in compliance with international standards and subject to strict State supervision. At the same time, the legitimate interest of clients in the protection of their private sphere should continue to be respected.

LGT Bank in Liechtenstein

Centrum Bank

VPBank