Congress Probes A Royal Family Bank
The more global the market becomes, the greater the risk of xenophobic attacks against organizations of all sorts. Too often, foreign entities are easy targets for regulators and politicians eager to exploit the frustrations of their constituents.
The Principality of Liechtenstein and its European bank were named by Congressional investigators (the Senate Permanent Subcommittee on Investigations) in an offshore tax avoidance and tax shelter investigation that alleged they deprived the US Treasury of multiple billions of dollars per year. The Congressional witch hunt that ensued had significant potential for negative media attention affecting the Royal Family, as well as the bank’s depositors.
LEVICK confronted biased media and focused additional government inquiries and media attention on other bigger-name players. As bank executives and members of the Royal Family were guided through the Subcommittee process, and as a positive proactive communications initiative was implemented, media interest waned. The bank subsequently introduced its own self-directed series of reforms.
The Principality of Liechtenstein and its European bank did not pay a single fine or penalty. The impact on its client relationships was minimized.