Liechtenstein to go for more financial transparency

Wealthy foreigners who evade tax by hiding their investments in the secretive state of Liechtenstein may soon find it difficult to carry on with the practice, it has been revealed.

The Alpine state is reportedly set to announce measures aimed at introducing greater transparency on financial matters in the country's banking industry, according to the Financial Times.

"We will not give up bank secrecy. But we are willing to collaborate with other nations when it comes to the misuse of bank secrecy laws for tax evasion," the paper quoted the country's prime minister, Otmar Hasler.

The announcement comes in the wake of recent pressure on the principality from foreign governments - including the UK through Her Majesty's Revenue and Customs (HMRC) - to give up details on foreigners banking in the country.

According to recent reports, HMRC is already in the process of pursuing tax evaders. The tax body has reportedly sent out disclosure requests to 25 foreign banks requesting information on UK citizens with offshore accounts.