Liechtenstein alters bank-secrecy policy

FRANKFURT - Offshore haven Liechtenstein has agreed to a landmark deal with the United States to drop bank secrecy in cases of tax evasion and could make similar concessions in the European Union, a diplomat from the Alpine nation said.

Prince Nikolaus, of Liechtenstein's ruling royal family who brokered the deal, said yesterday the principality agreed to a "significant" change to bank secrecy rules that entitles the United States to account information in a probe of a tax dodge.

Liechtestein - with Monaco and Andorra - is blacklisted by the Organization for Economic Cooperation and Development and was the target of a German investigation into thousands of citizens suspected of parking untaxed income there.

The prince said he was prepared to grant similar concessions within the European Union but wanted double-taxation agreements as well a commitment to deal leniently with those who hid money in Liechtenstein.

REUTERS