BusinessCompany NewsLiechtenstein and LGT group helped clients hide wealth

Liechtenstein and LGT group helped clients hide wealth

The methods used to hide client money included holding wealth in the name of a foundation, as well as counsel on the use of offshore structures and 'transfer corporations'

Investigators for the US Congress are set to deliver a 100-page report today,
which will accuse UBS and Liechtenstein’s LGT Group of helping US clients avoid
billions in tax through the use of banking secrecy laws.

The report is understood to contain details of how the banks ‘colluded’ with
their clients, helping them to obscure their income from regulators. The banks
are believed to have known of their clients’ intent to hide their wealth from
the Internal Revenue Service.

The methods used to hide client money included holding wealth in the name of
a foundation, as well as counsel on the use of offshore structures and ‘transfer
corporations’ which disguised movement and transfer through LGT accounts, the
FT
reported.

The report – which does not draw on any conclusion as to whether the banks
broke the law – comes amidst an international crackdown on wealthy individuals
who seek to hide their incomes in highly protected banking jurisdictions such as
Liechtenstein.

It also suggests that the US Treasury loses $100bn (£50bn) annually to
offshore abuses.

Further reading:

Liechtenstein on charm offensive

Ex-UBS employee says bank helped clients hide millions

UBS banker to plead guilty in evasion case

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