Black money is no longer safe in Swiss banks
June 19, 2017
India and Switzerland will start exchanging financial account information starting 2019.
Switzerland is one of the leading global financial centres and in 2015, was again one of the most competitive financial centres in the world. The issue of black money has been a matter of great debate in India and Switzerland has been long perceived as one of the safest havens for the illicit wealth allegedly stashed abroad by Indians.
TURNING POINT FOR INDIA
The Indian government’s campaign against black money stashed overseas received a major boost on Friday with Switzerland ratifying the automatic exchange of information (AEOI) on financial accounts with India and 40 other jurisdictions, even as it sought strict compliance on confidentiality and data security.
AEOI (Automatic exchange of information) is an international standard that governs how tax authorities in the participating countries exchange data relating to the bank and safekeeping accounts of taxpayers. The goal is to make tax evasion impossible. Switzerland has already introduced the AEOI with at least 38 countries and territories, including 28 members of the European Union, and will start sharing data with them in 2018. With a lot of unaccounted Indian money reportedly being kept in Swiss banks, India and Switzerland have been in talks for a long time for the introduction of AEOI.