Princely Family-owned LGT Bank in Tax Evasion Investigation

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HRH Kerry

Royal Highness
Oct 6, 2005
Up the street,hang a left,3rd house from the corner
United States
Germany's Merkel criticises Deutsche Post CEO for his silence on tax fraud probe

...Liechtenstein Ambassador to Germany Prince Stefan von Liechtenstein told Handelsblatt newspaper today the case on Zumwinkel will be one of the topics to be discussed between Hassler and Finance Minister Peer Steinbrueck next week.

Germany's Merkel criticises Deutsche Post CEO for his silence on tax fraud probe -

...It included details of accounts held by Liechtenstein Global Trust (LGT) Group, a bank managed by the Principality of Liechtenstein, which has become a focus of the investigation...

Hundreds of Germans raided in €3.4bn tax evasion scandal - Times Online

The Crown Prince of Liechtenstein accused Germany yesterday of undermining the tax haven’s sovereignty and of acting illegally by paying an informer for financial details that have led to the biggest tax fraud inquiry in German history.

Prince turns on Germany over paid informer in tax fraud row - Times Online

...But Crown Prince Alois said it was Germany's complex financial system that needed to be overhauled. "Germany will not solve its problems with its taxpayers by attacking Liechtenstein," he said. "Germany has the worst tax system in the world."

Liechtenstein slams Germany's tax spies tactic - Telegraph
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Royal Family-Owned Bank in Tax Evasion Investigation

There are plenty of pics of Prince Alois in his press conference defending the sovereign state's stance against Germany and their fraud scandal as well as their tactics.

Here's a couple of pages:
ANP Bleedbank
ANP Bleedbank
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Thanks HRH Kerry for taking the time to post all this news. Very interesting situation that the Prince is in. I hope all turns out well.
No problem. Very interesting indeed. I'm just trying to keep this sub-forum alive. They might not be as popular as members of the other principality but they are my favorite. :flowers:
And The Drama Continues...

Note: This is getting very political. Just posting news in Liechtenstein as it pertains to the Princely Family. Read on.:flowers:

Tension Mounts Over Tax Haven

...Germany -- possibly the country most affected by Liechtenstein and its way-too-friendly tax system -- bought information stolen by an employee of one of Liechtenstein's main banks, LGT, which is owned in part by Liechtenstein's royal family...

Tension Mounts Over Tax Haven - OhmyNews International
Royal Family-Owned Bank in Tax Evasion Investigation

It seems that the bank which is owned largely by the royal family is under investigation by German and US tax authorities with regard to aiding tax evasion by use of Liechtenstein's highly private banking laws.

The bank is LGT Group, and it is (in turn) looking into prosecuting the former employee who sold the data to prosecutors. That data, on a DVD, was sold to German tax authorities and led to the German and US authorities' inquiries.

Liechtenstein has positioned itself strongly as a private banking enclave in the past 10 years, with the return to near-absolute monarchy as part of the "selling" point of privacy. Strong words are being thrown by German politos, including referring to Liechtenstein as a "rogue state." It will be interesting to see how this plays out over the next months and years.

"Liechtenstein's head of state, Prince Alois, said on Thursday he wanted to smooth differences between the two nations and end the "ping-pong game" between Berlin and Vaduz."


Liechtenstein bank says records passed to Germany have 1,400 client names - International Herald Tribune / Companies / Financial services - Focus of inquiry shifts to Swiss bank

Germany-Liechtenstein Tax Evasion Scandal Shifts Focus
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How very interesting!! Isn't Prince Maximillian Of Liechtenstein president or CEO of LGT? I think it is good that the governments are trying to find tax evaders but isn't having an employee of a company sell private banking information to a government agency a bad way to go about it.
I think one of the points that LGT is making, is that the employee was charged with theft and those charges were dropped. They were dropped because the employee admitted to theft with the explanation that he did not intend to profit from the information but took it for his own protection.

Now, of course, it comes out that he was paid approximately $7.4MM USD for the DVD.

Yet there also appears to have been genuine wrongdoing at the source, the taxpayers. Greater good debate, perhaps.

I wonder where this will all end.
Thanks for the extra link, NAP. I read an article about in yesterday's LA Times... very interesting, indeed.
As I see it, Liechtenstein's tax policies are their own but surely if you want to bank there, you should have to be a citizen or you're contravening the tax laws of your own country? It means that Liechtenstein becomes a haven for criminals and that's unfortunate.
Liechtenstein offers to push bank reform

...Prince Max of Liechtenstein, younger brother of the acting head of state and chief executive of LGT, the family-owned bank at the centre of a tax dispute with Germany, said the time had now come “to sit down constructively with our good neighbours”... / World - Liechtenstein offers to push bank reform
Give me back my art!

Liechtenstein cancels art loan to Germany over tax row

Liechtenstein's royal household said Tuesday it will suspend loans of art works from its collection to Germany, marking a new low in ties between the two countries embroiled in a tax scandal...

AFP: Liechtenstein cancels art loan to Germany over tax row
Tax haven crackdown

Germany, Britain and America are all in hot pursuit of citizens hiding their money from the taxman, reports Dominic O’Connell

SERIOUS, dark-suited and bespectacled, Prince Max of Liechtenstein looks more like a banker than the second-youngest son of one of Europe’s royal families... Tax haven crackdown - Times Online
You have to ask yourself, if the principality will buckle under pressure and give into the demands of today or if its clients are indeed safe? After all, these files were from 2002. Hmmm?
Liechtenstein May Cooperate on Tax

Liechtenstein may cooperate with other countries on tax-evasion investigations in the same way the principality confronts cases of tax fraud...

Hereditary Prince Alois talks about the tax crisis. New photo included.

Read here.
Should India take the freebie inre to the LGT tax scandal? It seems that Transparency International might be putting some pressure on the country's government. Story here.
Here is a link to the progression of the Anti-Fraud Agreement. Vague?
LGT Bank

This is a tough time for LGT Bank. It appears that the US govt. is now also investing the actions of wealthy Americans investing in LGT. Apparently Germany isn't the only country interested in finding out tax cheats.

Wealthy Americans Under Scrutiny in UBS Case -

"The Senate Permanent Subcommittee on Investigations is scheduled to hold hearings as early as this month on offshore products sold by UBS and by the LGT Group, the bank owned by Liechtenstein’s royal family."
LGT is really experiencing problems. The US Senate is having hearings tomorrow to find out which Americans have secret accounts with LGT and UBS. Here is an interesting video. It shows the royal family.

ABC News
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Does Germany tax their citizens' investments overseas as the US does? People generally do not cross country lines to invest in another country unless they have a lot of money or try to "launder" ill gotten gains.
It will be very interesting to watch whose names show up on the lists.
Judging by the article, LGT managed its clients' affairs in much the same way as the Swiss banks. Unfortunately for LGT, a disgruntled employee sold off a list of some of the bank's clients and that list has now made its way to the US tax authorities. I don't think it should surprise anyone that Swiss banks, and by extension LGT, don't wish themselves or their clients to be exposed to public scrutiny. They provide banking, business and investment services for the wealthy who, for obvious reasons, choose not to deposit their capital in their home countries.

Apart from Switzerland and Liechtenstein, there are still the Cayman Islands, the Bahamas, Bermuda, Netherlands Antilles, Panama, Belize, the Channel Islands, the Isle of Man, Andorra, Singapore and Hong Kong as politely-termed "offshore banking centres", plus no doubt quite a few others, where absolute discretion is (almost) guaranteed.
Liechtenstein – Willingness To Cooperate In Tax Matters

Liechtenstein's National Day also serves the purpose of reflection on the present and consideration of the future. Not unexpectedly, the tax affair in Germany and its consequences for the Liechtenstein financial center were one of the focuses this year. Hereditary Prince Alois of Liechtenstein announced the willingness of the country to cooperate in tax matters...

Read full article here.
Move over Liechtenstein, Germany now takes on Switzerland? Read here. Article by
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Liechtenstein close to an agreement with the European Union. Article in French by Romandie News.
Pics 12.3.2009

Prince Alois of Liechtenstein speaks to the media during a
press conference in Vaduz, Liechtenstein, March 12, 2009.

Bowing to international pressure, Liechtenstein said it will ease
it's strict banking secrecy rules and swap information with foreign
governments to combat tax fraud and evasion.

** Pic 1 ** Pic 2 ** Pic 3 **
Pics 17.3.2009

Prince Max von Liechtenstein, CEO of Liechtenstein's LGT bank
addresses the annual news conference in Zurich March 17, 2009.

** Pic 1 ** Pic 2 ** Pic 3 **
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