Liechtenstein’s financial sector is under intense investigation following revelations about an intricate web of Russia-linked “zombie trusts” operating within its borders. These entities, often dormant yet legally intact, have been exploited to channel illicit funds, evade sanctions, and obscure financial trails. Authorities in the principality are now collaborating with international regulators to sift through these shadowy arrangements, aiming to dismantle networks that have inadvertently made Liechtenstein a hotspot for sanction circumvention.

Key aspects of the crisis include:

  • Multiple trusts showing no active management but holding substantial assets linked to sanctioned Russian individuals.
  • Increased scrutiny from financial watchdogs…