European Tax Haven

Liechtenstein says ‘no’ to banking anonymity

Liechtenstein has bitten the bullet and will finally close the door on banking anonymity.

The Liechtenstein Bankers Association announced that a formal agreement to comply with, and enforce, the abolition of banking anonymity will take effect from the beginning of this month.

From then, all intermediaries (who, it is estimated, are responsible for one-third of Liechtenstein’s bank accounts) will be required to reveal the names of the depositors they represent. The banks will then perform their own identity checks on their customers. The new regulations do not apply solely to new account holders: current customers’ identities will also be investigated.

European Tax Haven & Liechtenstein Bankers Association

The Bankers Association fears that some clients may refuse to reveal their identity and choose to withdraw their funds. The move will be welcomed by institutions such as the OECD and the FATF.

The Alpine principality has found itself to be the focus of intense international scrutiny over allegations that its banks were used to launder money by organised crime and drug barons. Things came to a head in June this year, when the FATF blacklisted Liechtenstein as one of 15 nations accused of failing to cooperate in the fight against money laundering.

European Tax Haven - Bankers Association