Liechtenstein's ultra secret bank secrecy has come under renewed attack from the EU.
It was a hard nut to crack. Eventually Liechtenstein's bank secrecy was broken by a rogue bank employee paid handsomely by the German government. But now the EU's blood is up it wants its pound of flesh in the form of new information exchange agreements.
What's in store for Liechtenstein's secretive offshore banking?
Excerpt from eubusiness article:
European Union finance ministers on Tuesday called for the renegotiation of a deal with Liechtenstein on measures to tackle tax fraud, seeking guarantees of better access to banks' information.
A statement by the council of ministers, meeting in Brussels, said it "strongly invites the (EU) commission to continue negotiations with Liechtenstein," calling for a report from the EU's executive by May.
The ministers are seeking "to obtain such change in the text" as to ensure "effective administrative assistance and access to information with regard to all forms of investments, in particular foundations and trusts."
Liechtenstein's prime minister resigned after his party suffered shock losses in a general election on Sunday, just months after a tax evasion scandal sparked international criticism of the principality's secretive banking rules.
Liechtenstein, wedged between Austria and Switzerland, came under pressure from Germany and other countries last year following investigations into suspected mass tax evasion through accounts in the country.
German Chancellor Angela Merkel has called for greater transparency in the principality, where investors can use foundations to buy or hold assets anonymously.
The principality has reached an agreement with the United States on fighting tax evasion and now EU nations want a similar deal.
EU member states "expect Liechtenstein to encompass in the agreement with the European Community and its member states at least a similar scope" of agreement as that "recently agreed with third countries," the finance ministers said in their statement.
Amazing.
Looks like another former great tax haven has one foot in the grave and the other on a banana peel.
I'd be shocked to see Liechtenstein roll over for the EU easily given the importance of their bank secrecy laws, but stranger things have happened the last couple of years.
Thanks for the update.
abe