Liechtenstein's Head Of State Says "Quite A Few Storms Swept Across Our Location For Financial Services" In 2000

Ulrika Lomas, Tax-news.com, Brussels

05 January 2001

In an interview with the Liechtensteiner Vaterland recently, the principality's ruling Prince Hans-Adam II reflected on the year 2000, saying 'quite a few storms swept across our location for financial services.' Indeed, Liechtenstein was rarely out of the spotlight amidst claims it is a haven for money launderers. The principality has largely managed to shake off the steady stream of "dirty money" allegations, and Prince Hans-Adam said that it had not left any 'remaining damage'.

Liechtenstein, whilst fiercely protective of its revered banking secrecy, has made considerable efforts to improve its laws governing money laundering and looks to have come out of a turbulent year for its financial services sector with optimism. Prince Hans-Adam told the Liechtensteiner Vaterland: ' Wherever necessary, there were reforms and the situation for the location for financial services was better than before. Hopefully, we'll be successful once again'.

Heinz Nipp, Chairman of the Board of the LGT Bank in Liechtenstein, was also interviewed. He had this to say about the year 2000 for the principality's finance industry: 'Massive foreign pressure on Liechtenstein as a location for financial services with an undue mixing up of money laundering and banking secrecy, however, led to some uncertainty of current and potential [bank] customers. The results are a significantly increased need for information and a more difficult acquisition of clients' assets'.

However, the Prince is under no illusions when it comes to the issues of banking secrecy and tax harmonisation, which he believes are really at the core of last year's attacks on the world's tax havens. He said: 'Now we must be aware that many of these states [the G-7 nations] are less interested in fighting organised crime and money laundering than in tax harmonisation and repealing banking secrecy. Even if we were world champions in fighting organised crime and money laundering, criticism of Liechtenstein and the location for financial services would not cease, at least from within Europe. At least not until the project of a European or even world-wide taxation cartel will have failed'.

Recommended