Liechtenstein’s LLB Bank’s Secret Accounts Blackmailed

On Monday Liechtenstein-based bank LLB  disclosed that it has been the target of a blackmail campaign since 2003.  An employee threatened to publish the secret banking account details of German clients.

‘”A former employee blackmailed the bank with used, internal documents concerning German bank clients,” said LLB, or Liechtensteinische Landesbank. “He threatened to circulate the documents.”‘

According to LLB, the employee was arrested sentenced and imprisoned in  2004.  While the former employee remains in prison, a former accomplice continued blackmailing the bank.  An additional person was arrested in September and remains in custody in Germany, LLB said.

‘The statement follows an article in German magazine Der Spiegel that said LLB had paid out 9 million euros ($13.11 million) as part of the blackmail affair, which affected hundreds of German clients who stashed savings in secret accounts in the tiny Alpine enclave.’

‘Sandwiched between Austria and Switzerland, the principality of Liechtenstein is home to three mid-sized private banks — Swiss-listed LLB and VP Bankand the unlisted LGT Bank in Liechtenstein — and scores of small wealth managers who boast discreet banking services for international clients.’

Liechtenstein is noted for strong bank secrecy laws.  They are considered more strict than even those of  Switzerland.  Switzerland is generally considered the world’s largest offshore banking centre.