The Principality of Liechtenstein and Bank Privacy

The Principality of Liechtenstein and Bank Privacy The Principality of Liechtenstein is a tiny country locked in between Austria and Switzerland; it has just 33,500 residents and ranks as one of the world's smallest countries. But it's also rich and has been ruled by the same aristocratic family for centuries, making it one of the world's most politically stable nations.
Not long ago, a popular saying in German-speaking Europe was, "In Switzerland, the bankers don't talk. In Liechtenstein, they don't have tongues". But all that's changed. After reports by Interpol that traces of practically every white-collar crime committed in Europe led to Liechtenstein, the OECD's Financial Action Task Force put this tiny country on its money laundering "blacklist" in 2000. Swift and painful changes followed. Declaring that "Liechtenstein faces the biggest domestic and foreign political crisis since World War II", Liechtenstein's ruling prince spearheaded sweeping financial reforms that gave the government much greater powers to investigate suspect financial transactions, confiscate laundered assets and cooperate with authorities in other countries in investigations of serious crimes.
While Liechtenstein retains a culture of privacy and bank secrecy laws remain on the books, it now has the same know-your-customer rules that are in effect almost everywhere else in the world. However, Liechtenstein still does not cooperate in foreign tax investigations. Any foreign tax official inquiring about an account in Liechtenstein is politely shown the door