Black Money – Domestic and International Efforts

Swiss parliamentary panel okays auto info exchange with India


Note4students

Mains Paper 2: IR | Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests

From UPSC perspective, the following things are important:

Prelims level: Not much

Mains level: Important pact against black money


News

Big step against Black Money

  1. A key parliamentary panel in Switzerland has approved an automatic information exchange pact between the two countries
  2. It will pave the way for India to get instant access to details on Indians with Swiss accounts

Same pact with 40 countries

  1. The Commission for Economic Affairs and Taxes of the Council of States approved the proposed pact with India as also with 40 other countries
  2. The commission is a key panel of the Swiss Parliament’s Upper House

What now?

  1. The proposal will now be submitted for approval from the upper chamber of Swiss Parliament, the Council of States, in the winter session beginning November 27

How will the exchange work?

  1.  If an Indian has a bank account in Switzerland, the bank concerned will disclose the financial account data to authorities there
  2. the Swiss authority will automatically forward the information to its peer in India who can then examine the person’s details

Background

  1. The issue of black money has been a matter of big debate in India, and Switzerland has been long perceived as one of the safest havens for the illicit wealth allegedly stashed abroad by Indians
  2. To help check cross-border tax evasion, nearly 100 countries, including India and Switzerland, have so far committed to adopt this global standard for the automatic exchange of information (AEOI)

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