In a significant step towards tracing black money stashed in foreign bank accounts, Switzerland on Friday has ratified automatic exchange of financial account information with India.
For long, Switzerland has been regarded as the haven for black money hoarders from various countries including India. This move marks the end of Switzerland’s banking secrecy.
India should now automatically be able to access transactions made by Indians with Swiss banks after September 2019 and information of accounts held by Indians residing in Switzerland for 2018 and the subsequent years.
Black money in Swiss accounts has been a point of contention between India and Switzerland. The finance ministry had said there is no official account of black money held by Indians in Swiss banks.
Switzerland’s ratification has emerged as a result of hectic parleys between India and Switzerland for introduction of the AEOI (Automatic Exchange of Information) on tax matters under the guidance of G20, OECD and other global organisations.
The Swiss Federal Council, which is the top governing body of the European nation, said the proposal to introduce AEOI with India and others was “met with widespread approval from the interested parties who voiced their opinions in the consultations”.
“In concrete terms, the AEOI will be activated with each individual state or territory by means of a specific federal decree within the framework of this dispatch,” it added.
