Selected Issues Papers

Liechtenstein has strategically positioned itself as a prominent financial center in the wake of the global financial crisis and increasing demands for transparency. The strategy emphasizes transparency, compliance and robust regulatory framework aligned with international standards. The financial sector is outsized compared to its economy, with significant assets under management reflecting its focus on international clients. Unlike many other financial centers, Liechtenstein does not significantly host shell corporations. While systemic risks are mitigated by off-balance sheet and unleveraged operations, the financial center model carries compliance and reputational challenges. Continued vigilance remains paramount for the sustainability of its financial center strategy.