Liechtenstein is fighting back against the global scrutiny into its banking procedures, after a number of countries - including Ireland - began probing citizens who may be evading tax through Liechtenstein accounts.
The Liechtenstein prosecutor has announced an investigation into a former bank employee and others over the alleged theft of client data that sparked the global tax evasion probe.
Former LGT Bank employee Heinrich Kieber, and others as yet unknown, are being investigated for allegedly stealing confidential data to pass on to foreign authorities.
Mr Kieber apparently sold a disc to Germany's foreign intelligence agency allegedly containing the names of about 1,400 suspected tax dodgers, of whom about 600 are said to be Germans.
Germany paid more than €4m to the whistleblower and has said it will cooperate, without charge, with requests from other countries for information.
The crackdown came to light when Klaus Zumwinkel, the high-profile chief executive of Deutsche Post, was questioned by police over suspected tax evasion. He resigned after his house was raided by investigators.
Now the tax evasion investigation has gone global.
Liechtenstein criticised as tax haven
Ireland is among the countries hunting for tax dodgers.
The Irish Revenue Commissioner's head of offshore assets investigations, Paul Walsh, confirmed that Revenue is writing to the equivalent authorities in Germany seeking information on Irish residents who may have placed money in Liechtenstein.
Business tax rates are favourable in Liechtenstein and much of its wealth is based on its status as being a low-tax haven.
In 2000, two international reports criticised Liechtenstein for lax financial controls, saying that the Liechtenstein banking system enabled gangs from Russia, Italy and Colombia to launder money from their criminal activities.
Foreigners are allowed to invest money in accounts wherever they choose but they are obliged to inform the authorities in the country where they pay tax.
However Liechtenstein, as well as Andorra and Monaco, are considered uncooperative in terms of operating tax havens, according to the Organisation for Economic Cooperation and Development.
