WT/TPR/S/208Trade Policy Review Page 116
The Due Diligence Act52, as amended, and the corresponding ordinance are the main legal instruments to prevent and combat money laundering and financing of terrorism. Customer due diligence is based mainly on the obligation to prepare and maintain a customer profile, including beneficial ownership information, source of funds, and purpose of the relationship. According to the IMF, "both money laundering and financing of terrorism are criminalized broadly (though not fully) in line with the international standard".53
The Financial Intelligence Unit (FIU), which is part of the Ministry of Finance, is responsible for combating money laundering. In 2007, the FIU examined 205 cases raising suspicion; 141 led to further enquires by the prosecutors office.54 The authorities indicate that Liechtenstein has transposed the EC's Second Money Laundering Directive and initiated implementation of the Third Directive.
Liechtenstein is one of three countries on the OECD List of Uncooperative Tax Havens. This list is part of a framework established by the OECD in 1998 to identify and address the problems caused by "harmful tax competition" by both preferential tax regimes and "tax havens". According to the OECD, countries placed on the list have not yet made commitments on transparency and effective exchange of information.55 According to the authorities, negotiations on an anti-fraud agreement regulating cooperation on tax matters with the EC and its member states were largely concluded in June 2008.
With the world's highest average per capita premium volume (over Sw F 7,000 per year), Switzerland benefits from an unusually high degree of insurance cover taken on by national consumers, while internationally the industry is particularly strong in the field of reinsurance. As at June 2008, there were 213 companies offering insurance services: 117 non-life insurers (78 Swiss, 39 foreign), 26 companies offering life-insurance (22 Swiss, 4 foreign); 26 reinsurance companies; and 44 captives (self-insurers).
Insurance activities in Switzerland are governed by the Insurance Surveillance Law (LSA, RS 961.01), the Insurance Contract Law (LTA, RS 221.229.1), and complementary ordinances. Revisions of both laws entered into force in January 2006 with a view to strengthening solvency requirements and improving consumer protection and insurance supervision. The Federal Office of Private Insurance (FOPI) is responsible for supervision of the insurance subsector (with the exception of compulsory health and accident insurance); this task will be taken over by the FINMA in January 2009. The supervision of compulsory social insurance is under the responsibility of the Federal Social Insurance Office (FSIO), while SECO is in charge of supervising the unemployment insurance, and the Swiss Federal Office of Public Health is responsible for supervising all matters concerning sickness and accident insurance.
52 SR 952.1.
53 IMF (2008a).
54 Financial Intelligence Unit des Fürstentums Liechtenstein (2008).
55 For further information, see OECD online information, "List of Unco-coperation Tax Hevens". Viewed at: http://www.oecd.org/document/57/0,3343,de_2649_37427_30578809_1_1_1_37427,00.html [16 April 2008].