Tax havens make concessions as pressure mounts

[Joanne98]

* Liechtenstein offers to further ease bank secrecy

* Andorra plans to relax bank secrecy

* Switzerland could make concessions ahead of G20



By Lisa Jucca

ZURICH, March 12 (Reuters) - Black-listed tax havens Andorra and Liechtenstein on Thursday relaxed their strict bank secrecy rules in the face of a global crackdown that looks set to force top offshore centre Switzerland to open up.

The moves come as finance ministers from the G20 group of developed and emerging countries prepare to meet in Britain from Friday ahead of a summit in London on April 2 that is expected to seek ways to fight offshore tax evasion.

Other offshore centres, whose banking industries have thrived under the blanket of privacy laws to attract foreign wealth, have also made concessions in recent weeks, as the financial crisis prompts cash-strapped western governments to be more aggressive against tax evaders.

The tiny Alpine principality of Liechtenstein said on Thursday it would comply with international tax and data sharing standards set up by the Organisation for Economic Cooperation and Development (OECD), by-passing neighbouring Switzerland in the quest for more tax transparency.

"I'm quite sure Switzerland will take similar steps in the near future," Crown Prince Alois von und zu Liechtenstein said.

Andorra, a bank secrecy stronghold nestled between France and Spain, said also on Thursday that it was planning to relax bank secrecy to be removed from an OECD blacklist. It planned to pass a law to this end by November.

The OECD list includes Liechtenstein, Andorra and Monaco, but France and Germany want others added.



PRESSURE MOUNTS ON SWITZERLAND

Switzerland, the world's biggest offshore banking centre with estimated assets under management of about $2 trillion, is under pressure from a U.S. tax fraud investigation into services offered by UBS (UBSN.VX)(UBS.N) to wealthy U.S. clients.

The country is mulling a revision of its banking secrecy laws. It has set up a committee of experts to come forward with proposals on more international tax cooperation in view of the G20 meeting and will discuss the topic at a meeting on Friday. Continued...

http://www.reuters.com/article/governmentFilingsNews/idUSLC94137420090312

[Kat45]

1. Hmm. I didn't even know those countries were tax havens (except Switzerland, of course).

Interesting. I do have my doubts that a whole lot will come out of this. And what about the Cayman Islands? Isn't that a huge tax haven?