Prince Alois, the state's hereditary ruler, will take the first step in a national day speech towards preparing the principality’s 34,000 people for the greater transparency demanded by international authorities trying to crack down on tax evasion.

Otmar Hasler, the prime minister, said the time had come for Liechtenstein to take the initiative after mounting criticism of its secrecy laws.

“We will not give up bank secrecy,” said Mr Hasler. “But we are willing to collaborate with other nations when it comes to the misuse of bank secrecy laws for tax evasion.”

Mr Hasler declined to detail the initiative but one measure being considered was thought to be an offer to give governments information about people with undeclared accounts provided they did not suffer excessive penalties.

Under the scheme, account-holders would be told their details were to be made available, giving them time to transfer their money elsewhere.

The plan would aim to improve Liechtenstein’s reputation as a transparent financial centre focused on wealth management rather than a tax haven.

Many of its banks’ customers are the offspring of people who salted money away decades ago and may welcome the chance to come clean with the authorities.

Greater co-operation would meet the demands of the Organisation for Economic Co-operation and Development and big neighbours that have been accusing Liechtenstein of aiding tax evasion indirectly for years.

More recently, the state has come under fire from Germany after it found that thousands of its wealthy citizens had hidden money in Liechtenstein. Data stolen by former bank employees and obtained by Berlin have also been passed to tax authorities around the world, including the UK, the US and Italy.

Mr Hasler’s initiative faces obstacles. A general election is to be held in February and the powerful financial lobby opposes change, fearing a loss of business if customers shifted assets to other tax havens.