Hackers steal data on 31,000 entities from Liechtenstein's beneficial-ownership register

The breach

Unidentified attackers gained unauthorised digital access to Liechtenstein's register of beneficial owners during the night of 29-30 July and copied data before irregularities were noticed. The government said the affected system was taken offline as a precaution after the Office of Justice flagged anomalies and called in the Office of Information Technology. The government was informed on Friday, and preliminary investigation results reached it on Saturday.

After preliminary findings, an unknown perpetrator gained unauthorised access to the register via digital means.

What was taken

The register rests on the law of 3 December 2020 on the register of beneficial owners of legal entities, in force since 1 April 2021, which implements the European Union's fifth anti-money-laundering directive and replaced an act of 6 December 2018. It holds names and other details of individuals behind companies, foundations and trusts. The government confirmed that data relating to about 31,000 legal entities was copied. There is currently no indication that data in the system was altered or deleted, and no ransom demands have been received. The Liechtenstein Bankers Association, whose director is Simon Tribelhorn, told Reuters that no banks and no bank-client data were affected.

It is a regrettable incident and must not be downplayed.

Crisis response

A crisis task force headed by Prime Minister Brigitte Haas and Justice Minister Emanuel Schädler was convened on Saturday evening. Its primary objectives are to investigate the incident thoroughly, inform those affected and implement countermeasures. A central information point is being set up for affected individuals to direct questions. The government said it is working to notify those whose data was compromised as quickly as possible.

There have so far been neither ransom demands, nor is the register on the darknet and offered for sale.

Reputational fallout

Peter V. Kunz, managing director of the Institute for Business Law at the University of Bern, described the breach as a worst-case scenario for Liechtenstein, whose financial centre has for decades attracted wealth through foundations and trusts offering discretion. He warned that wealthy individuals who value privacy will now steer clear of the principality. Kunz also argued that the damage extends to Switzerland, which is closely associated with Liechtenstein in the minds of international investors and is set to introduce its own transparency register in autumn.

Bad news for Liechtenstein is also bad for Switzerland.

The principality's position

Liechtenstein, with roughly 41,000 inhabitants and an area of 160 square kilometres, is one of the world's smallest and richest countries by GDP per capita. Financial and banking services are among its most successful sectors. Until banking secrecy in tax matters was abolished in 2017, the principality had been used by numerous tax evaders, particularly Europeans, who misused local foundations and accounts. The government has pointed to extensive reforms in combating its tax-haven image, and the now-breached register was itself part of those transparency efforts.

A spokesman for Germany's interior ministry said there is currently no indication that Germany or German citizens are affected, though he stressed the situation could change and that Berlin is taking the attack very seriously. The crisis task force was expected to provide an update on Monday.