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By Europe business correspondent Patrick Bartlett
Police in Liechtenstein announced on Friday they had raided the offices of a bank owned by the principality's ruling family, as part of an investigation into money-laundering.
Police in the capital Vaduz said a group of 20 officers from Liechtenstein and neighbouring Austria conducted a search of the LGT bank on Thursday.
They seized documents and electronic data related to accounts held at the bank.
The raid follows a six month investigation into money-laundering which has shocked the small Alpine community ruled by Prince Hans-Adam II.
His brother Prince Philip is president of the LGT bank's administrative council.
Money-laundering suspicions
Police said they wanted to establish whether any bank staff were aware of illegal transactions.
 Locals fear the scandal will harm the principality's reputation as a financial centre |
It is believed they may have used the bank for money-laundering deals amounting to tens of millions of Swiss francs.
One of the men in custody is a leading Liechtenstein politician.
The investigation was launched after the leaking of a German secret service report, linking trust fund administrators to dirty money from Colombian drugs cartels.
Led by Austrian prosecutor Kurt Spitz, investigators are also examining claims of money-laundering for the Russian mafia.
The allegations have caused consternation in the tightly-knit principality, which is one of the world's leading off-shore banking centres.
The government in Liechtenstein is concerned the scandal could harm the principality's reputation as a financial centre, following earlier criticism of lax banking supervision.
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