Liechtenstein

What is the scope of the Travel Rule in Liechtenstein?

In Liechtenstein, all Trustworthy Technologies* (TT) transfers fall under the scope of the Travel Rule. 

Additionally, all TT service providers that provide services on behalf of a third party in connection with digital assets or tokens must comply with the Travel Rule. 

These services include: 

• “Token Issuer”: a person who publicly offers tokens on their own behalf or on behalf of a client (only secondary market trading falls under the Travel Rule);

• "TT token custodian": a person who keeps tokens in the name of a third party for the account of a third party;

• “TT Protector”: a person who holds tokens on TT Systems in their own name for the account of others;

• "TT exchange service provider": a person who exchanges legal tender for tokens and vice versa, and tokens for tokens;

• "TT Agent": a person who professionally sells or provides TT services in the name and on account of a foreign TT service provider.

[TVTG, article 2, i to u]

Notably, if traders in goods are paid in virtual currencies for an amount equal to or superior to CHF 10,000, they are also subject to due diligence obligations.

*As per TVTG, article 2. a, TT means "Trustworthy Technologies (TT): "Technologies that ensure the integrity of tokens, the clear assignment of tokens to TT identifiers and the availability of tokens." 

A TT service provider can be an individual or a company. 

Who is the supervisory body for VASPs in Liechtenstein?

Financial Market Authority (FMA)

What is the Travel Rule threshold in Liechtenstein (FMA)?

CHF 1

All TT service providers must identify the originator TT service provider and verify its identity. Enhanced due diligence must be applied if the counterparty is based in a high-risk jurisdiction. [Article 23d]

Obligations of ordering TT service providers

For all transfers surpassing the CHF 1 threshold, the ordering TT service provider must collect and transmit the information below to the beneficiary TT service provider:

• originator's name;

• originator's account number, where an account is used to process the transaction; 

• originator's address, official personal document number, customer identification number or date and place of birth;

• beneficiary's name;

• beneficiary's account number. 

Additionally, before the execution of the TT transfer, the TT service provider needs to: 

• determine procedures on how the required information is to be sent, and in case of missing or incomplete data, ensure its subsequent transmission;

• ensure that the above information is correct and complete, including the use of documents, data or information from reliable and independent sources;

• establish ex-post or real-time monitoring to ensure the required information on the originator or the beneficiary. 

If the transfer is not to or from a TT account, the individual transaction code must be collected and transmitted in place of the account number.  

Other obligations related to the Travel Rule in Liechtenstein

All TT service providers must identify and verify the originator counterparty's identity. Enhanced due diligence should be performed if the counterparty is located in a high-risk jurisdiction. 

Additionally, this counterparty review should be similar to correspondent banking due diligence and always be concluded with the approval of senior management. The review should also include using a blockchain investigation provider to assess the company's risk exposure to potential illicit activities. 

When a domestic TT service provider transacts with a large foreign VASP that has not implemented the Travel Rule yet, the domestic TT service provider should attempt to exchange the information. If the counterparty rejects it, this should be documented.

Does Liechtenstein’s Travel Rule apply to self-hosted wallets?

TT service providers must conduct enhanced due diligence if dealing with self-hosted wallets. This includes: 

• clear assignment of the wallet to the beneficiary (Proof of Ownership, e.g. via a Satoshi Test of cryptographic signature (like AOPP);

• analyses of transactions through a blockchain investigations tool;

• enhanced information on the Source of Funds on the incoming transactions;

• a full KYC check on the client.

When do you need to comply with the Travel Rule in Liechtenstein?

Now.

Which regulations are applicable to the Travel Rule in Liechtenstein?

Article 12 of the Due Diligence Act

Article 23 of the Due Diligence Ordinance

FMA Instruction 2021/18 Obligations when carrying out TT transfers

Token- und VT-Dienstleister-Gesetz; TVGT

Annexe 4 of the Ordinance on professional due diligence to combat money laundering, organised crime and terrorist financing (Due Diligence Ordinance; SPV)