A Mighty Fortress Is My Tax Haven

But scandal-plagued Liechtenstein is tightening banking laws

Prince Hans-Adam II of Liechtenstein rules by a single guiding principle. "We have to guarantee a sphere of privacy," he says, sitting in a 12th century stone castle fortified with ramparts and a moat designed to keep out hostile invaders. That guarantee has cultivated a secretive financial services industry and a flourishing tax haven for the world's superrich. It has also been a boon to his own family's LGT Bank, which with $29 billion in assets is by far the largest bank in Liechtenstein.

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