Finance Minister Paula Cox does not believe that Bermuda is likely to suffer anything similar to the ever-widening international tax evasion probe being focused on Liechtenstein.

Both German and British tax authorities have paid for data linked to accounts held by their citizens at Liechtenstein banks.

The probe into the tiny Alpine country, wedged between Austria and Switzerland, has broadened. Yesterday it emerged that at least eight other countries have information on citizens who potentially used Liechtenstein bank accounts to avoid taxes.

Mats Sjoestrand, Sweden's Tax Agency's director general, told Swedish media that Sweden, the US, France, Italy, Spain, Canada, Australia and New Zealand were also looking at the cases of citizens they believe had hidden money in Liechtenstein.

But as the international appetite for catching tax evaders appears to be hotting up, Ms Cox feels Bermuda has nothing to fear.

"There is no comparison between Liechtenstein and Bermuda," Ms Cox told The Royal Gazette. "Bermuda has never adopted statutory bank secrecy rules. We respect confidentiality of clients however we also recognise that we must understand today's dynamics in the global economy.

"For this reason in 2000 when Bermuda gave a commitment to the Organisation for Economic Cooperation and Development's (OECD) standards of transparency and exchange of information, we reiterated our stance that we do not adopt measures that have been characterised as harmful such as embedding in legislation measures that prevent any form of disclosure.

"However we take measures to ensure that any exchange of information for tax purposes is well defined by statute. In this regard Bermuda has been recognised as one of the leading international financial centres."

She added that Bermuda had signed Tax Information Exchange Agreements (TIEAs) with the US in 1988, with Australia in 2005 and most recently with the UK last year.

Additionally, there were "discussions with other jurisdictions underway".

There is undeniably a huge amount of money from overseas invested in Bermuda. According to the recently released International Monetary Fund report on the Island, there were about 1,267 registered mutual (investment) funds in Bermuda, as of September 30, 2006.

These comprised some 2,161 investment portfolios with net asset values totalling in excess of $210 billion.

Government is making big efforts to tighten its anti-money laundering measures to comply with recommendations made by the IMF.

Last Friday, the Government tabled in Parliament the Bermuda Monetary Authority Amendment Act 2008 bill, which will aim to, among other things, enlarge the scope of the BMA's powers of assistance to foreign regulatory authorities.

Liechtenstein was thrust into the spotlight last week, when the German government said it had paid as much as five million euros ($7.4 million) for information on German account holders in Liechtenstein on a disk provided by an informant to the Federal Intelligence Service.

It's open to sharing this information with other countries, the German Finance Ministry said yesterday.

The UK has paid nearly $200,000 for information on 100 Liechtenstein bank accounts as it steps up its crackdown on tax evasion.

US tax authorities said yesterday they were taking action against more than 100 American taxpayers in connection with accounts in Liechtenstein The Internal Revenue Service (IRS) said it was "initiating enforcement action" and that it was cooperating with seven other nations "following revelations that Liechtenstein accounts are being used for tax avoidance and evasion."

IRS Acting Commissioner Linda Stiff warned in a statement: "Anyone with hidden income and gains would be well-advised to make a prompt and complete disclosure."

Sweden is also investigating about 100 Swedes with questionable accounts. An estimated 46 billion kronor ($7.3 billion), or 3.5 percent of total revenue, in Swedish taxes is lost each year as a result of people putting money abroad or making errors on foreign payments, Swedish authorities estimate.