LLB Vaduz resolves US taxation dispute
Vaduz, 30 July 2013. Liechtensteinische Landesbank AG, Vaduz, has reached a
definitive solution to the US taxation dispute with the US authorities.
Following months of negotiations, a Non-Prosecution Agreement has now been
signed by both parties. The US has agreed to end its investigations into LLB
Vaduz, which in return will pay a sum of USD 23.8 million. The bank has
already set aside provisions amounting to this sum. The agreement also
includes an explicit agreement by the US not to impose a fine or criminal
penalty on LLB Vaduz. This solution marks a definitive end to the US taxation
issue for LLB Vaduz.
The US authorities had been investigating whether clients of LLB Vaduz had
violated US taxation law and securities regulations, and whether the Bank had
been involved. Intensive negotiations between LLB and the US authorities have
been taking place in recent months.
LLB Vaduz, the U.S. Department of Justice and the Attorney's Office for the
Southern District of New York signed a Non-Prosecution Agreement. This
agreement marks an end to the investigations into LLB Vaduz and means that no
further legal steps will be taken against LLB Vaduz.
As part of the agreement reached, LLB Vaduz undertakes to pay the gross profit
of USD 16.3 million earned from 2001 to 2012 on transactions with undeclared
assets held by US clients. Of that amount, USD 15.9 million will be paid to
the US authorities and USD 0.4 million to the Liechtenstein tax authorities
for their costs in connection with the US requests. In addition, LLB Vaduz
will compensate the US with a payment of USD 7.5 million for lost tax revenue
during the same period.
In the Non-Prosecution Agreement, the US authorities explicitly undertake not
to impose a fine or penalty on LLB Vaduz beyond the payments for gross profit
and lost tax revenue. What is more, they acknowledge that the Bank voluntarily
took measures even before the investigations began, with a view to putting a
stop to any US relationships without the corresponding documentation. Since
the end of 2008, for example, LLB has only accepted as its clients US persons
who disclose their assets to the US tax authorities using Form W-9.
Relationships with persons who do not meet this criterion were gradually
brought to an end.
Payment covered by provisions
Based on the information currently available, the LLB Group set aside total
provisions of CHF 47.2 million in its 2012 annual results and 2013 interim
results for the US taxation issue. The portion of the provisions set aside for
LLB Vaduz will now be eliminated. The definitive solution reached with the
Non-Prosecution Agreement corresponds to the amount reserved for LLB Vaduz,
which means that the solution will not have any further impact on the income
The LLB Group will now continue negotiations with the US authorities to find a
definitive solution for LLB (Switzerland) Ltd. and swisspartners Investment
Network AG. Corresponding provisions for both companies were made by the LLB
Group in the 2013 interim results respectively the 2012 annual results.
*Thursday, 29 August 2013, 2013 interim results
*Tuesday, 25 March 2014, 2013 annual results
*Friday, 9 May 2014, 22nd General Meeting of Shareholders
Liechtensteinische Landesbank AG (LLB) is the longest established financial
institute in the Principality of Liechtenstein. The Principality of
Liechtenstein holds the majority of the company's share capital. The LLB's
shares are listed on the SIX Swiss Exchange (symbol: LLB). The LLB Group
offers its clients comprehensive wealth management services, as a universal
bank, in private banking, asset management and fund services. With about 1'000
employees, the Group is represented in Liechtenstein, Switzerland, Austria and
the United Arab Emirates (Abu Dhabi and Dubai). As per 30 June 2013, the LLB
Group managed client assets totalling CHF 50.5 billion.
Liechtensteinische Landesbank AG
Dr. Cyrill Sele, Head Group Corporate Communications & General Secretary
Telephone +423 236 82 09, fax +423 236 87 71
E-mail firstname.lastname@example.org, Internet www.llb.li
Dr. Cyrill Sele
Head Group Corporate Communications & General Secretary
Liechtensteinische Landesbank Aktiengesellschaft
Staedtle 44, P. O. Box 384, 9490 Vaduz, Liechtenstein
Telephone +423 236 82 09
Fax +423 236 87 71
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