Liechtenstein fights back against tax probe

Liechtenstein is fighting back against the global scrutiny into its banking procedures, after a number of countries - including Ireland - began probing citizens who may be evading tax through Liechtenstein accounts.

Foreigners are allowed to invest money in accounts wherever they choose but they are obliged to inform the authorities in the country where they pay tax.

However Liechtenstein, as well as Andorra and Monaco, are considered uncooperative in terms of operating tax havens, according to the Organisation for Economic Cooperation and Development.

Why You Should Consider Offshore Banking

Opening a bank account in an offshore location has many other benefits other than just secrecy. Offshore bank accounts tend to offer more lucrative investment options than local bank accounts; offshore bank accounts also tend to offer higher interest rates on simple deposits. It is for these reasons that most individuals (especially the wealthy ones) tend to place their money in bank accounts in these countries. Rather than have your money subject to all manner scrutiny in your own country, having this money in an offshore location protects your privacy and garners more profits for you as well. There’s nothing wrong with someone who wants to secure a better financial future for themselves and their family by securing their assets in an offshore bank account.

UBS to wind down offshore private banking for US clients

About 60 private bankers in Zurich, Geneva and Lugano are affected. A few might transfer to UBS Swiss Financial Advisers, a Zurich subsidiary created specially to meet US regulatory requirements, but not enjoying Swiss banking secrecy on securities transactions.

"We are talking to lots of people. It is clear there has been a rather exceptional situation over the past three to four months," said an executive at Impact Partners, a Geneva executive search company dealing with some of the UBS staff affected.

Offshore banking 'a good option'

Consumers who are thinking of moving abroad could opt to take out offshore banking accounts, NatWest has suggested this week.

Products in this sector are growing in stature and therefore should be considered by such individuals, an official at the bank noted.

Head of NatWest international personal banking Dave Isley argued that there are many benefits to be seen from such banking methods, including those on the "taxation side".