Liechtenstein Will Resist Moves To End Bank Secrecy, Says Prince

Liechtenstein is unlikely to dispense with its coveted banking secrecy laws any
time soon because such a measure would probably not be approved if put to a
referendum, according to Prince Alois, ruler of the Principality.

Prince Alois told Bloomberg News in an interview published on Monday that
banking secrecy is "very firmly anchored" in Liechtenstein and any proposed
watering down of current laws to satisfy the OECD and the FATF would therefore
be rejected when put to a referendum - a necessary measure under the
Principality's constitution.

"I don't think a draft law or international accord proposing to scrap bank
secrecy would be successful in the foreseeable future. The people would reject
it in a referendum," Prince Alois stated.

Financial services constitutes about 30% of Liechtenstein's gross domestic
product; according to the recent progress report on anti-money laundering
initiatives across the globe, by the US State Department, Liechtenstein’s
well-developed offshore financial services sector, relatively low tax rates,
liberal incorporation and corporate governance rules, and tradition of strict
bank secrecy have contributed significantly to the ability of financial
intermediaries in Liechtenstein to attract funds from abroad.

However, the report went on to note that these same factors have historically
made the country attractive to money launderers.

"Rumours and accusations of misuse of Liechtenstein’s banking system persist in
spite of the progress the principality has made in its efforts against money
laundering," the report stated.