The Liechtenstein Financial Market Authority published its Annual Report 2024 in English, outlining supervisory, regulatory, resolution and enforcement activity and describing how its framework and organisation have been adjusted for major EEA-related reforms. The report highlights the entry into force of a redesigned legal framework for supervising banks and investment firms, alongside Liechtenstein’s pre-implementation of the Markets in Crypto-Assets Regulation and the Digital Operational Resilience Act. From 1 February 2025, prudential rules for banks and investment firms were split into separate laws and key concepts and processes were aligned with the EEA framework, including revised licensing consequences for lapse or withdrawal, prior approval requirements for senior management and board roles, statutory requirements for risk management and compliance functions, and updated approval and notification obligations. For crypto-assets, pre-implementation allows the Financial Market Authority to authorise firms under Markets in Crypto-Assets Regulation even though passporting is not yet available, with registered Token and TT Service Provider Act firms that fall under the new regime able to continue under the old framework until 31 December 2025. Digital Operational Resilience Act preparations included a first-quarter 2024 market survey on ICT third-party providers and the build-out of new supervisory processes, including oversight of threat-led penetration testing and a new reporting system covering ICT incidents and a register of information. The report also notes amendments to the Financial Market Supervision Act that took effect on 1 March 2025, including a dedicated legal basis for warning notices and expanded procedural rights for the Financial Market Authority. On supervision and enforcement, cross-sector priorities in 2024 included crisis prevention and management, anti-money laundering, ESG-related supervisory review and ICT security, supported by 21 on-site inspections and transaction monitoring based on about 8.4 million reports with reported volume of approximately CHF 160 billion. Legally enforceable fines totalled CHF 971,500 across 18 proceedings, and the authority filed 41 criminal complaints and submitted 24 reports to the Financial Intelligence Unit. Looking ahead, the report points to a Markets in Crypto-Assets Regulation transition deadline of 31 December 2025 for affected Token and TT Service Provider Act firms, and notes that the remaining EU anti-money laundering package is scheduled to apply from June 2027 at the earliest, which is expected to require extensive domestic legislative revisions.

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