## Liechtenstein as a Financial Center: Liechtenstein

_Selected Issues Papers, April 28, 2025_

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**Canonical URL:** [Liechtenstein as a Financial Center: Liechtenstein](https://www.imf.org/en/publications/selected-issues-papers/issues/2025/04/28/liechtenstein-as-a-financial-center-liechtenstein-566462)

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## Bibliographic details
- Authors: Thomas Elkjaer
- Published: April 28, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229010993.018

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### Strategic positioning and sector characteristics
- 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 a 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.
- Systemic risks are mitigated by off-balance sheet and unleveraged operations.

### Key findings
- The financial center model has enabled substantial asset management activity oriented to international clients.
- The model carries compliance and reputational challenges despite mitigants from conservative balance-sheet practices.
- Continued vigilance is paramount for the sustainability of the financial center strategy.

### Policy implications and recommendations
- Maintain and strengthen transparency and compliance frameworks to align with international standards.
- Continue robust regulatory oversight to address compliance and reputational challenges associated with the financial center model.
- Preserve conservative risk practices that limit systemic exposure, including monitoring of off-balance sheet and leverage practices.

### Subject focus and keywords
- Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT), Balance of payments, Crime, Economic sectors, Financial institutions, Financial sector, Foreign direct investment, Mutual funds, Revenue administration, Tax evasion
- Keywords: AML/CFT, Anti-money laundering and combating the financing of terrorism (AML/CFT), Asset under Management, financial center model, financial center strategy, Financial sector, Foreign direct investment, Foreign Direct Investments, Global, International Financial Center, Liechtenstein, Liechtenstein authorities, Mutual funds, Off-shore, Regulatory Compliance, Tax evasion, Tax Evasion and Avoidance, Washington D.C. International Monetary Fund

*Source: Liechtenstein as a Financial Center: Liechtenstein — International Monetary Fund, April 28, 2025.*

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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/04/28/liechtenstein-as-a-financial-center-liechtenstein-566462_