What needs to be observed

For every FinTech company, it must be clarified whether the intended activity falls within the scope of the Liechtenstein anti-money-laundering law (Due Diligence Act; SPG) and whether the activity may be subject to the licensing requirement.

Due diligence

Due diligence encompasses obligations that serve to prevent money laundering and terrorist financing. These provisions require in particular that contracting parties are identified and monitored and that effective measures must be available to prevent money laundering and terrorist financing. The scope of due diligence obligations is given by Article 5 of the Due Diligence Act (SPG); in certain exceptional cases, Article 10 SPG provides for simplified due diligence.

Financial service providers subject to the licensing requirement – such as banks, asset managers, and insurers – are subject to due diligence, but also activities not subject to any licensing requirement under financial market law, such as real estate brokers and dealers in goods. A complete list of all persons subject to due diligence can be found in Article 3 SPG.

Is my FinTech subject to due diligence?

Do you accept third-party assets or manage them?
Do you make investments on behalf of clients?
Do you execute payments for clients?
Do you issue e-money or a virtual currency?
Do you exchange one currency into another, or do you enter a currency into a virtual system?
Do you serve as an intermediary for transactions?

If you answer any of these questions in the affirmative, then you most likely engage in an activity subject to the Due Diligence Act.

Licensing requirement

Some activities are subject to a licensing requirement under specialized legislation. It is always determined on a case-by-case basis whether a business model includes activities subject to the licensing requirement under financial market law. In all cases, it is recommended to consult with the FMA in advance, given that violations of the financial market rules may incur penalties.

Is my FinTech subject to the licensing requirement?

Do you accept third-party assets or manage them?
Do you make investments on behalf of clients?
Do you execute payments for clients?
Do you issue e-money or a virtual currency?
Do you exchange one currency into another, or do you enter a currency into a virtual system?
Do you serve as an intermediary for transactions?

If you answer any of these questions in the affirmative, then you most likely engage in an activity subject to the licensing requirement.

What legal foundations may be relevant to me?

The following remarks are intended to provide an illustrative overview of possible business models and potentially applicable legal foundations.

Please note that the selection of laws is in no way exhaustive and/or binding, but rather serves only as guidance. It is always determined on a case-by-case basis whether a business model includes activities subject to the licensing requirement under financial market law. In all cases, it is recommended to consult with the FMA in advance, given that violations of the financial market rules may incur penalties.

For the business models listed as examples, the following legal foundations may be relevant:

Payment

My FinTech...

...maintains payment accounts.
...carries out payment services.
...offers payment solutions.
...issues payment instruments.