RSSThe banking sector is the focal point of the Liechtenstein's financial services sector. There are 16 licensed banks in Liechtenstein. 6 banks are economically dominated by Liechtenstein investors, 5 by investors from Austria and 5 by investors from Switzerland.
Approximately 2,807 people are employed in the banking sector in Liechtenstein. The Liechtenstein Bankers’ Association has its headquarters at Vaduz and it represents the interests of the banks.
Private banking, based on a comprehensive protection of bank client secrecy, is the prime core of the banking activities. Banks operate in an environment characterized by high political and social stability and a legal structure that complies with international standards and is compatible with EU requirements. Banking supervision (FMA), as part of overall financial market supervision, complies with internationally recognized principles.
The banking in Liechtenstein is regulated under the Law on Banks and Finance Companies 1993. The law has been considerably revised following Liechtenstein's entry into the EEA in 1995 through the Law on Banks and Finance Companies 1998.
The Act concerning Banks and Savings Funds 1960 imposes heavy penalties for breaches of professional secrecy. Other recent legislation dealt with due diligence on the part of bankers accepting deposits or assets installing ‘know your customer’ rules. The ‘know your customer’ system is legally compulsory from 1st October 2000 onwards for all banks that belong to the Liechtenstein Banker’s Association. This means that banks in Liechtenstein, previously known as one of Europe's most secretive tax havens, can no longer guarantee anonymity for new and existing account holders, although further account details will remain under normal banking secrecy agreements.
Liechtenstein private banks are able to offer highly tax-efficient asset management services to clients, using one or other of the forms available under the PGR Code. This means that the income received in Liechtenstein from international assets can be forwarded or reinvested with minimal or no local taxation.
Source: www.lowtax.net
www.liechtenstein.li
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