People

Liechtenstein is a minor destination country for human trafficking, mainly for forced labour and sexual exploitation. Victims typically include asylum seekers, unaccompanied children, nightclub dancers, agricultural workers participating in training programmes and caregivers for the elderly. While instances of trafficking exist, the market remains small and unconsolidated.

Human smuggling is not widespread in Liechtenstein, with no notable changes in market activity in recent years. Migration-related offences declined slightly in recent years. Most incidents involved breaches of entry and residence regulations, while a small number were related to aiding and abetting irregular migration. The extent of human smuggling remains small, in part due to the country's strong border controls and regulatory environment.

Extortion and protection racketeering are not established markets in Liechtenstein. While past sporadic cases have been mentioned in media reports, no significant incidents of blackmail, extortion, or protection racketeering were recorded in recent years.

Trade

The arms trafficking market in Liechtenstein is unconsolidated, and no documented cases of arms or ammunition smuggling were recorded in recent years.

There is no substantial evidence of counterfeit goods being traded in Liechtenstein. Similarly, the illicit trade in excise consumer goods remains negligible. The country’s regulatory framework, coupled with strong enforcement mechanisms, ensures that significant illegal markets for these goods do not emerge. Any potential smuggling activities are likely small-scale and do not indicate an organized criminal presence.

Environment

Liechtenstein does not have a well-established market for flora crimes. While anecdotal reports of these occur, they appear to have little impact.

Fauna crimes are not a concern in Liechtenstein, with no substantial data indicating their presence in recent years. Similarly, the country’s lack of natural resources minimizes risks associated with non-renewable resource crimes. While historical reports suggest some instances of gold smuggling, no current evidence indicates that Liechtenstein serves as a transit or destination hub for illicit metals. However, recent sanctions by the Office of Foreign Assets Control targeted a Liechtenstein-based precious metals firm allegedly involved in disguising the origin of Russian precious metals and facilitating financial crimes linked to Russia. This suggests that illicit financial flows related to non-renewable resources may pass through the country.

Drugs

Heroin does not have a significant market in Liechtenstein. While sporadic cases of confiscated heroin have been recorded during vehicle checks, overall consumption has declined substantially in recent decades. Liechtenstein is both a transit and destination country for cocaine. While no direct evidence suggests the presence of well-organized domestic groups, foreign mafia-style groups are reportedly involved in smuggling cocaine through the country. Investigations have revealed suspected mafia networks operating between the Vilters-Wangs and Graubünden municipalities and northern Italy, forming a trafficking route across the Alps. Offshore financial services in Liechtenstein are allegedly used to launder profits from the cocaine trade. Cannabis is the most-consumed drug in Liechtenstein, particularly among young people. Most cannabis-related legal cases involve personal consumption, with few instances of trafficking. Online buying of cannabis is increasing, driven by domestic demand. Furthermore, the European School Survey Project on Alcohol and Other Drugs shows that cannabis use among students in Liechtenstein is significantly higher than the European average. Synthetic drugs do not constitute a well-established market in Liechtenstein, and their use remains limited. Local police authorities report that ‘traditional’ drugs such as cannabis and cocaine dominate the illicit drug trade, with synthetic substances such as LSD, Ecstasy and GHB being consumed at or below the European average.

Cyber-dependent crimes

Cybercrime is present in Liechtenstein, with many businesses and institutions, including cryptocurrency exchanges, having been targeted by cyberattacks. These attacks include ransomware, Trojans and other forms of malware. Notably, a ransomware attack on an IT system supplier for the National Police resulted in the encryption and publication of sensitive data on the darknet. Liechtenstein’s acceptance of the token economy and blockchain technologies has increased its vulnerability to cyber-dependent crimes.

Financial Crimes

Liechtenstein’s central European location and well-developed financial sector make it a key offshore financial centre. The country offers various financial services, including private banking and asset management, which make it attractive to organized criminal groups. Interpol has identified financial crimes as a key issue in Liechtenstein, with fraud constituting the most-reported financial crime. Investigations also indicate that mafia members launder illicit profits through Liechtenstein, with some reportedly maintaining strong ties with local banks. Border checks have led to the discovery of counterfeit currency, which is believed to be used by the Calabrian mafia, ‘Ndrangheta, to operate businesses in neighbouring countries. However, the exact origins of these operations often remain unclear.

Liechtenstein’s banking sector remains attractive for individuals seeking financial secrecy, as it imposes no withholding tax on interest earnings, unlike Switzerland. The country also sees frequent cases of investment fraud and embezzlement. These cases mainly involve administrators from Liechtenstein and originate from predicate offences such as fraud, organized crime and bankruptcy fraud committed abroad. Despite international pressure and regulatory changes, Liechtenstein continues to resist reforms that would fully address its role as an enabler of illicit financial flows. The Financial Action Task Force has identified economic crimes, particularly fraud and corruption, as major predicate offences in the country, with risks mainly linked to international clients and wealth management services.

Criminal Actors

Liechtenstein’s geographical location and strong financial sector make it an attractive destination for various business activities, including those that are often exploited by organized crime. But there is no concrete evidence of domestic mafia-style groups or similar criminal networks in Liechtenstein.

Nonetheless, certain risks persist due to the increasing prevalence of cocaine in the country. While no established cocaine-trafficking networks have been identified, law enforcement authorities are monitoring the potential for individual smugglers to form more structured groups.

There is no evidence in Lichtenstein of government officials or political figures actively participating in illicit markets, engaging in criminal activities or collaborating with organized crime groups. Reports do suggest, however, that some sectors of the economy have a permissive climate of facilitation.

Foreign actors, particularly those linked to financial crimes, exert notable influence in Liechtenstein due to the country’s banking secrecy laws and favourable financial regulations. Notably, ‘Ndrangheta has been identified as using Liechtenstein’s financial system to conduct illicit operations. ‘Ndrangheta members have been reported to be present in the country, likely due to Liechtenstein’s convenient proximity to Austria and Switzerland.

Private-sector actors are among the most influential criminal facilitators in Liechtenstein, particularly in relation to financial crimes. Banking secrecy and tax evasion schemes often rely on the involvement of corporate employees, financial service providers and legal professionals. Local law firms have been suspected of playing a role in facilitating financial crimes.

Leadership and governance

Liechtenstein has demonstrated strong political leadership and governance in combating organized crime, particularly financial crime and money laundering, as a reaction to its historical reputation as a tax haven. The country performs well in terms of governance indicators, such as government effectiveness and rule of law. Human rights and civil liberties are largely respected, with no significant risks of criminal influence over political processes. The country operates under a constitutional monarchy with a parliamentary system, granting significant power to the prince, which has been reinforced by public referendums. Government institutions maintain a strong capacity to address misconduct effectively, with no credible reports of major human rights violations in recent years.

Government transparency and accountability mechanisms are generally strong, with minimal corruption-related behaviour identified within public institutions. However, the Council of Europe’s anti-corruption body has recommended the introduction of a comprehensive code of conduct for parliamentarians, arguing that the existing protective mechanisms are insufficient. Liechtenstein also has weak transparency laws, which lack clear access rights, appeal mechanisms and enforcement provisions. While constitutional guarantees for information access do not exist, government transparency laws are generally respected in practice. Recent initiatives have sought to improve banking sector transparency, given longstanding concerns about the role of financial secrecy in enabling illicit financial activities.

Liechtenstein actively engages in international cooperation on organized crime, having ratified the UN Convention against Transnational Organized Crime (UNTOC) and its additional protocols on human trafficking, migrant smuggling and firearms trafficking. The country also participates in the UN Commission on Crime Prevention and Criminal Justice and various Council of Europe conventions related to criminal justice. Despite this, Liechtenstein remains one of the few European nations that has not joined the ILO. Bilateral agreements with Switzerland and Austria facilitate trilateral police cooperation. The National Central Bureau of Interpol plays a key role in facilitating international law enforcement coordination. In 2024, Liechtenstein signed agreements with the US to enhance economic and strategic cooperation, and with the EU on continued funding in support of human rights and environmental initiatives.

Liechtenstein’s legal framework comprehensively addresses organized crime, with laws criminalizing the establishment and participation in criminal groups, as well as offences such as human smuggling, terrorism financing and human trafficking. Specific provisions exist for crimes such as forced marriage and environmental offences. The country is also a signatory to the CITES, reinforcing its commitment to wildlife protection. Liechtenstein is currently establishing a Cybersecurity Strategy and is strongly engaged in fulfilling the obligations that stem from the Budapest Convention, such as mutual legal assistance and international cooperation on a bi- and multilateral basis. While the country’s legal framework is robust, its banking secrecy laws continue to present difficulties for transparency and enforcement efforts.

Criminal justice and security

Liechtenstein’s judiciary is considered impartial and independent, but there are concerns about the prince’s constitutional authority over the appointment process for judges, which reduces democratic accountability. The selection process has been criticized by the Group of States Against Corruption (GRECO), which has called for increased transparency and integrity. Despite earlier procedural reforms, the core issue of executive influence over judicial appointments remains unaddressed. The country operates a small prison facility, with most long-term sentences served in Austria. Overall, Liechtenstein has the lowest incarceration rate in Europe, with generally high standards of rights and conditions for detainees.

The Liechtenstein National Police, comprising about 160 personnel, is the country’s sole law enforcement agency. It is structured into divisions covering security, traffic and criminal investigations. The force is generally well-respected, with no documented cases of systemic abuse or corruption. However, police officers have the authority to deny detainees legal representation during initial questioning. The police have also developed specialized units to address digital crime, including the establishment of the Kommissariat Digitale Kriminalität, which has strengthened Liechtenstein’s cybercrime enforcement capabilities.

Liechtenstein maintains strong territorial integrity, bolstered by its customs agreement with Switzerland. Border control mechanisms are robust despite the country’s central European location, which could otherwise make it susceptible to illicit flows. Since joining the Schengen Area in 2011, Liechtenstein has relied on Swiss authorities for border security along its western and southern frontiers, while Austrian authorities monitor its eastern and northern borders. Though free movement within the Schengen Area poses monitoring challenges, Liechtenstein’s small size allows for efficient control of cross-border activities.

Economic and financial environment

Liechtenstein has made efforts to enhance its anti-money laundering (AML) framework, though its status as an offshore financial hub continues to attract illicit financial flows. The country’s Financial Intelligence Unit (FIU) oversees AML compliance and inter-agency cooperation. The Financial Market Authority serves as the primary regulator for financial institutions, with a mandate to combat financial crimes. While the FIU has improved coordination among national authorities, financial secrecy laws still hinder the effectiveness of domestic information exchange. Liechtenstein is among the weakest performers in Europe on AML efforts, due to remaining vulnerabilities in its financial regulatory system. However, the country has enacted asset forfeiture laws and expanded whistleblower protections, signalling an increased commitment to financial transparency.

Liechtenstein’s economic regulatory environment benefits from its European Economic Area membership, aligning it with EU’s AML and counter-terrorism financing standards. The country has been recognized by MONEYVAL, the Council of Europe’s AML body, for its high compliance with international standards, though problems do occur in investigating and prosecuting complex financial crimes. In 2024, the government initiated consultations on aligning its regulations with new EU cryptocurrency oversight frameworks. Liechtenstein became the IMF’s 191st member in 2024.

Civil society and social protection

Victims of crime in Liechtenstein have access to judicial participation through the Liechtenstein Code of Criminal Procedure. The Victim Assistance Act ensures support services for individuals affected by violent or sexual crimes, including access to counselling, legal aid and financial assistance. The country operates a Victim Assistance Centre, which provides multilingual support and direct outreach. That said, support services for human trafficking victims remain little used, with only one formal report filed through the country’s whistleblower system. Liechtenstein leads the Finance Against Slavery and Trafficking initiative, which has facilitated banking access for thousands of survivors of human trafficking.

Crime prevention initiatives in Liechtenstein include educational campaigns on cybercrime awareness and drug prevention programmes targeting young people. However, resource constraints within the FIU have raised doubts about its ability to manage an increasing workload effectively. Conservation efforts are also a focus area, with nature protection zones and endangered species monitoring programmes in place.

Press freedom is constitutionally guaranteed in Liechtenstein, but the country’s media landscape lacks diversity, with only one private television station and a single public radio broadcaster. Economic challenges led to the closure of the country’s oldest newspaper in 2023, further limiting media pluralism. However, residents have access to foreign media outlets from neighbouring German-speaking countries, which mitigates some of these concerns. Liechtenstein ranks highly in press freedom indices, and there is limited state interference in journalistic activities. Despite the country’s small media sector, freedom of expression remains well protected.