US, Liechtenstein to exchange data on tax evaders

Switzerland (AP) — Liechtenstein is to sign an agreement next week that allows U.S. authorities to request information on Americans suspected of hiding money in the tiny principality, officials said Friday.

The deal, ending Liechtenstein's traditional silence on tax evasion matters, will lay out the conditions under which U.S. officials can ask the country to hand over bank account information starting Jan. 1, 2010, said government spokesman Max Hohenberg.

Like its larger neighbor Switzerland, Liechtenstein distinguishes between tax fraud, which it regards as a crime, and tax evasion, which is an administrative offense. Until now, neither country has cooperated with other nations' investigations into tax evasion.

"We are very satisfied to have reached this agreement with the U.S. because it gives legal certainty to our bank clients," Hohenberg said.