Liechtenstein Bank Forced to Pay Tax Evasion Settlement IRS
by Joseph M. Donegan on August 27, 2013
In another victory for the IRS and the Department of Justice, Liechtensteinische
Landesbank AG - or Liechtenstein Bank, for short - has been ordered to pay out a large
financial tax evasion settlement for aiding Americans in avoiding taxes.
The terms of an agreement with the parties will require the Vaduz-based bank to pay
$23.8 million to U.S. authorities in order to avoid prosecution for its role in helping
American clients violate federal tax law. When broken down, the bank will be required to
forfeit $16,316,000 in revenue it earned and $7,525,542 in restitution. Further, the
institution will not contest a civil forfeiture action filed in July in the Southern District of
The bank was found guilty of helping account holders maintain secret accounts between
2001 and 2011. However, the company was largely able to make an agreeable deal with
U.S. authorities after it began cooperating in 2008 by handing over information on clients and helping change Liechtenstein secrecy laws, according to Forbes.