Liechtenstein bank orders audit of trust business

Liechtenstein's LGT Group said Friday it would order an independent audit into its trust business, which came under fire from U.S. lawmakers for allegedly helping wealthy Americans hide billions of dollars from tax authorities.

The bank, owned by the principality's royal family, said in a statement it would contract "an internationally renowned auditor" to look into LGT Treuhand and its business practices.

A U.S. Senate subcommittee on investigations held a hearing and issued a report criticizing LGT as one of the offshore banks that are helping Americans evade an estimated $100 billion in U.S. taxes a year. The panel also examined Swiss banking giant UBS AG.

Investigations linked to LGT have been launched in a number of countries since German authorities in February obtained the CD-ROM of some 1,400 alleged tax cheats with accounts at the bank. Germany has since passed the file to other countries, including the United States.

LGT said it has already decided to scale down business with private clients from the United States and focus more on Europe and Asia.

U.S. business "has never been run actively and had played a minor role for the LGT in terms of volume and gains," the bank said.

Liechtenstein's financial oversight authority said that it opened an investigation in May into whether LGT Group was assisting U.S. tax evasion.

In a separate statement, the body said it would also order an external audit of LGT. The oversight authority reports to the principality's parliament.