Interview with Simon Tribelhorn, CEO of the Liechtenstein Bankers Association

CEO Insight: How does the Liechtenstein Bankers Association (LBA) uphold Liechtenstein’s long-standing tradition of trust and privacy while meeting modern global transparency expectations?

Simon Tribelhorn: It upholds Liechtenstein’s reputation by promoting strong anti-money laundering and counterterrorism financing regulations, enforcing a strict zero-tolerance policy toward financial crimes. The association effectively balances client confidentiality with compliance to transparency standards, such as the OECD’s Common Reporting Standard for information exchange in tax matters. By encouraging ethical banking practices, the LBA ensures a harmonious blend of discretion and regulatory adherence, solidifying Liechtenstein’s position as a reliable and trusted financial hub.

CEO Insight: What strategic initiatives is the LBA pursuing to modernize Liechtenstein’s banking sector while keeping client needs at the forefront?

Simon Tribelhorn: A couple of years ago we have launched the Roadmap 2025, a multi-year strategy guided by the theme “Growth through Sustainability and Innovation. This marks the third iteration of our five-year strategic plan, building upon past achievements and further develop in order to be attractive in the future. The Roadmap 2025 places a clear focus on sustainability and innovation through digitalisation while at the same time upholding its high standing compliance standards and by doing so strengthening client-focused wealth management services. Recently, the LBA broadened its scope by introducing associate membership for non-banks, enhancing opportunities for collaboration and innovation. This expansion will further bring in diverse perspectives and expertise. Additionally, the Roadmap 2025 aligns with the UN Sustainable Development Goals (SDGs), aiming to make a meaningful contribution to global sustainability efforts. The strategy prioritizes embedding sustainability into banking operations, responding to clients’ increasing demand for ethical practices. By championing sustainable finance, Liechtenstein establishes itself as a frontrunner in responsible investment practices.

CEO Insight: In what ways is the LBA ensuring its members can adapt to the growing demands of international financial regulations without compromising their operational efficiency?

Simon Tribelhorn: The LBA plays a vital role in supporting its members by advocating for proportionate regulations at the EU level that align with the scale and needs of Liechtenstein’s smaller financial institutions. This ensures that these entities are not burdened by a ‘one-size-fits-all’ regulatory framework. As the voice of the banking industry, we try to take an active role and stance, and we will continue representing the banking center with pride. Our members have an entrepreneurial spirit, and having these members allowed us to become a modern and innovative thought leader. We perceive our role as facilitator to ensure that new business opportunities can be realized in and out of Liechtenstein, as information sharing platform between our members and other stakeholders. To keep our members informed and compliant, we conduct regular training sessions and workshops focused on evolving EU directives and international standards.

“As the voice of the banking industry, we try to take an active role and stance, and we will continue representing the banking center with pride”

Moreover, the LBA collaborates closely with the Liechtenstein Government and the authorities such as the Financial Market Authority (FMA) to optimize compliance processes, enabling banks to efficiently meet both European and global standards. Liechtenstein’s commitment to upholding international standards is evident in its strong ratings from organizations such as MONEYVAL, which has assessed the country as ‘compliant’ or ‘largely compliant’ with FATF recommendations, and the Global Forum, which has rated Liechtenstein as ‘Largely Compliant’ for tax transparency and exchange of information.

CEO Insight: How does the LBA assist its member banks in aligning wealth preservation strategies with global sustainability trends?

Simon Tribelhorn: The LBA supports its members by promoting the incorporation of Environmental, Social, and Governance (ESG) criteria into investment portfolios. It aligns – as mentioned earlier – its sustainability initiatives with the 17 UN Sustainable Development Goals (SDGs), making a comprehensive approach to sustainability a central pillar. The LBA encourages banks to embrace sustainable finance options, such as impact investing, which contribute to global sustainability objectives. Our discerning clients expect more than simply high-quality services. They want financial institutions to contribute to solving the environmental and social challenges of our time. We share this concern and see ourselves as part of the solution.

CEO Insight: In what ways is the LBA driving the adoption of ESG-focused financial products among Liechtenstein’s banks?

Simon Tribelhorn: Concurrently, we push for regulations that are straightforward to apply and business focused. We support our banks to engage in initiatives like the Net-Zero Banking Alliance, striking a balance between climate ambitions and financial returns. Sustainable investment has always been vital for our financial center. This reflects our long-term thinking and the belief that the financial services sector plays a crucial role in directing capital toward sustainable businesses. We see this as both a responsibility and a significant opportunity. We are privileged that our three major banks have committed to net zero and are members of the UN-convened Net-Zero Banking Alliance (NZBA). The LBA delivers training programs to educate staff on sustainable finance. Moreover, it collaborates with climate-oriented organizations to develop products such as carbon-neutral investments. Liechtenstein’s forward-thinking efforts to combat human trafficking also tie into specific SDGs, highlighting how sustainability reaches beyond environmental matters. Technology is instrumental in bolstering these sustainable finance efforts. Digital tools and platforms facilitate the monitoring of ESG metrics and promote transparency in sustainable investments, streamlining the process for banks to offer compliant and meaningful financial products.

CEO Insight: Cutting-edge technology strengthens the operational resilience and innovation of your member banks. How do you implement it?

Simon Tribelhorn: The LBA is harnessing technology by advancing digital solutions that simplify anti-money laundering (AML), know-your-customer (KYC), and tax reporting processes, reducing time and effort for banks. The LBA is also exploring AI-driven analytics to improve risk management and deepen client insights, especially in wealth management. Additionally, it ensures banks comply with cybersecurity standards, such as the European DORA Act, to safeguard operations in a growing digital landscape. Technology is a cornerstone of the Roadmap 2025 strategy, empowering banks to innovate while staying compliant. Looking ahead, AI will play a key role in crafting sustainable financial products, reinforcing Liechtenstein’s dedication to innovation and sustainability. Our ambition is to actively embrace these changes, viewing them as opportunities to remain competitive. Digitalisation, particularly blockchain technology, is reshaping value chains, while AI is changing how we work.

CEO Insight: How do you enable Liechtenstein’s banks to expand internationally while adhering to stringent tax compliance standards?

Simon Tribelhorn: We streamline cross-border operations by capitalizing on Liechtenstein’s European Economic Area (EEA) membership, which grants financial institutions EU passporting rights. It enables them to offer and provide their financial services and products authorised in Liechtenstein in all other EEA countries without further approval requirements. At the same time, Liechtenstein is required to transpose and apply all EU legal acts with EEA relevance into domestic law. This means Liechtenstein financial service providers are subject to the same regulatory framework as financial service providers from other EU/EEA countries. The LBA offers legal and compliance assistance to member banks for their activities in Liechtenstein and abroad, enabling them to overcome regulatory challenges effectively.

CEO Insight: What advantages do these initiatives provide Liechtenstein in standing out within the international financial landscape?
Simon Tribelhorn: They strengthen Liechtenstein’s competitive advantage by preserving access to the EEA, enabling seamless cross-border banking across Europe, and fostering robust partnerships with Switzerland. The launch of innovative offerings, such as sustainable investments, draws high-net-worth clients who value modern, ethical financial solutions. Liechtenstein’s swift adaptability to evolving regulations, paired with its AAA rating, establishes it as a stable yet dynamic financial hub. Its well-earned reputation for transparency and security resonates with global investors seeking dependable, well-regulated jurisdictions. Liechtenstein is perceived as a safe haven which has become even more important in these times of political and economic uncertainty like these.

About Liechtenstein Bankers Association (LBA)
The Liechtenstein Bankers Association (LBA) was founded in 1969 and represents the voice of Liechtenstein banks both nationally and internationally. As one of the most significant associations in the country, it plays a crucial role in the ongoing development of the financial centre. The LBA is an active participant in European legislative processes, being a member of important organisations such as the European Banking Federation (EBF), the European Payments Council (EPC), and the European Parliamentary Financial Services Forum (EPFSF). Since 2017, the LBA has also been part of the Public Affairs Council (PAC) with offices in Washington and Brussels, and since 2018, it has been a member of the international network “Financial Centres for Sustainability” (FC4S).

With the Roadmap 2025, the LBA has placed even greater emphasis on two critical areas: sustainability and digitalisation. Sustainability remains a key pillar of the strategy, with digitalisation acting as a major enabler of this transformation. Reflecting this focus, in 2021, the LBA became an official supporter of the UN Principles for Responsible Banking and the Net-Zero Banking Alliance, further demonstrating its commitment to sustainable and responsible banking.

About LBA’s Roadmap 2025, the strategy for the entire Liechtenstein banking center
The Roadmap 2025 outlines the multi-year strategy for the Liechtenstein banking center, centered on “growth through sustainability and innovation.” Climate change remains one of the most significant global challenges. We are the first generation capable of inflicting irreversible damage on the planet, but likely the last with the chance to prevent it. Achieving the Paris climate goals and the broader UN Sustainable Development Goals (SDGs) requires an immense financial commitment. According to PWC, around 7 trillion US dollars are needed annually to meet the SDGs, with the public sector currently covering only one-seventh of that amount. This leaves a substantial funding gap that must be filled by the private sector. The financial industry, particularly banks, has a crucial role in mobilizing and directing these resources. This responsibility comes with great opportunity: successfully supporting this transition will foster growth and ensure continued prosperity. Furthermore, increasing digitalization offers significant potential to accelerate this transformation for the benefit of future generations. This is precisely why sustainable finance is a key pillar of our strategy and why we place such importance on this topic.