Prager Dreifuss Newsletter - Effects of the case law of the Supreme Court (FL) on third party protection in business transactions with legal entities based in the Principality of Liechtenstein

A ruling by the Supreme Court of the Principality of Liechtenstein (Supreme Court), dated 4 February 2022 (CG.2018.269) is relevant for Swiss banks. The ruling – in its effect – reduces the protection of third parties in business transactions to a large extent. This article discusses the significance of this new case law and points out possible adverse consequences for Swiss financial institutions when entering into a client relationship with legal entities based in the Principality of Liechtenstein