[Congressional Record (Bound Edition), Volume 155 (2009), Part 23]
[Extensions of Remarks]
[Page 31549]
[From the U.S. Government Publishing Office, www.gpo.gov]




     LIECHTENSTEIN'S COOPERATION ON TAX AND FINANCIAL CRIME ISSUES

                                 ______
                                 

                           HON. JOHN SULLIVAN

                              of oklahoma

                    in the house of representatives

                       Friday, December 11, 2009

  Mr. SULLIVAN. Madam Speaker, I rise to bring to the attention of my 
colleagues the significant strides that the Principality of 
Liechtenstein has made through its comprehensive reforms in the 
regulation of its financial sector over the last nine years. These 
reforms are impressive. It is clear that Liechtenstein has demonstrated 
itself to be a trusted and effective partner in combating a wide range 
of financial crimes, including money laundering, terrorist financing, 
and tax fraud.
  As the Organization for Economic Cooperation and Development (OECD) 
removed Liechtenstein from its grey list of non-cooperating states in 
tax matters on November 11, 2009, I would like to use this benchmark to 
recognize the Principality for its record of achievements in increasing 
not only the transparency of its financial center internationally, but 
its increased partnership with the United States. Recent reforms 
guarantee that Liechtenstein will provide the United States and others 
with an increasing range of cooperation on international tax matters. 
Its initial reforms concentrated on anti-money laundering efforts. More 
recently, the government of Liechtenstein signed an important Tax 
Information Exchange Agreement with the United States and has concluded 
negotiations of an Anti-Fraud Agreement with the European Union.
  Liechtenstein's reform efforts began in 2000 when it committed itself 
to reform the regulation of its financial sector to better ensure that 
its banks and other service providers could not provide financial 
services to terrorists, drug lords, or other criminals. In 2001, 
Liechtenstein was taken off the Financial Action Task Force's (FATF) 
list of non-cooperating countries. Since that time, Liechtenstein has 
improved its cooperation with the United States and the rest of the 
international community in the fight against all forms of crime.
  Liechtenstein has worked closely with the U.S. government--including 
the Office of Foreign Asset Control (OFAC) and the Financial Crimes 
Enforcement Network (FinCEN)--to combat terrorist financing networks. 
In addition, since 2002, Liechtenstein's Financial Intelligence Unit 
has been engaged in an ongoing multilateral effort to disclose the 
financial network of Abdul Qadeer Khan, the founder of Pakistan's 
nuclear weapons program. Liechtenstein also successfully worked to 
secure the return to the Iraqi government of a Falcon 50 airplane that 
had belonged to Saddam Hussein and has worked with the Volcker 
Commission in investigations of the UN's ``Oil for Food'' program.
  Another step in Liechtenstein's international cooperation on 
financial crimes was the conclusion of a Mutual Legal Assistance Treaty 
(MLAT) with the United States in 2002. Additionally, the Tax 
Information Exchange Agreement (TIEA) between Liechtenstein and the 
United States was signed in 2008. Once fully implemented in 2010, 
Liechtenstein and the United States will work closely together on the 
full range of tax issues, including tax fraud and tax evasion.
  Liechtenstein's actions are to be commended. The continued 
productivity of the U.S.-Liechtenstein partnership is essential to 
fighting financial crimes and terrorist financing and I thank 
Liechtenstein for their commitment to these reforms.

                          ____________________