"Just let me finish this fax to the Luxembourg bank."

This placed the bank among top 10% of Luxembourg banks in terms of profitability (return on own funds).

The Luxembourg bank is a $20 billion institution with offices in 73 countries, including the United States.

"People are now going more and more to Luxembourg banks where they are sure they are beyond the reach of German authorities."

In March 2010, the Sunday Telegraph reported that most of Kim Jong-Il's $4bn in secret accounts is in Luxembourg banks.

During the undercover operation that led to the Florida conviction, prosecutors received further evidence that the Luxembourg bank may have had influence over First American.

"We've gained from Europe, but we've lost too," he said, noting that Luxembourg banks had to provide more information about account-holders to foreign tax men.

Some units such as DenizBank and the Luxembourg retail bank will be put up for sale.

Police have raided a Luxembourg bank bought last year by the millionaire Rowland family, seizing documents related to its previous owners, the scandal-hit Icelandic bank Kaupthing.

In the first Federal case of money laundering against a large international bank, two units of a Luxembourg bank agreed to plead guilty and forfeit $14 million.