In a big development against Black Money, today Swiss President Doris Leuthard assured Prime Minister Narendra Modi that once the law is cleared by the Swiss parliament by the end of this year, automatic exchange of information on black money will begin by 2019.
This is certainly a big boost for Modi Government as this will help them recovering the Black Money stashed in Swiss Account. Modi fought the 2014 General election on the issue of corruption and black money and it has been an issue where Public sentiments are with Modi Government. However there is a great amount of expectations from him as well. Though PM Modi has shown his intentions by appointing an SIT against Black money right in the very first Cabinet meeting, but people have started questioning the action taken by government in this regard.
Both leaders today held extensive talks on several issues of issues of mutual interest. However for India the foremost concern was regarding black money stashed away by Indians in Swiss banks.
After this delegation level meeting, PM Modi emphasized the importance of transparency in financial matters to keep ‘dirty money’ in check. He added that “Financial transparency is very important when it comes to issues such as black money, dirty money, Hawala or drugs and arms smuggling. Switzerland is cooperating with us to get rid of this curse”.
This development is a part of an ongoing process that was initiated when India and Switzerland signed a joint declaration on November 22, 2016 on the introduction of the Automatic Exchange of Information (AEOI) in tax matters on a reciprocal basis. The implementation of this requires clearance from the Swiss parliament which President Leuthard expressed confidence in getting soon.
President Leuthard further said that she hopes by end of this year the law will be cleared by the parliament so that the AEOI will become operational and the first batch of exchanges can take place by 2019.
Prime Minister Modi also reposed confidence in the Swiss leadership and said, “Last year we signed an agreement on automatic exchange of information. After completion of internal process in Switzerland, we will start getting information”.
Swiss Federal Council, the nodal agency and top governing body, on June 16 had ratified the automatic exchange of financial account information with India and 40 other jurisdictions to facilitate immediate sharing of details of suspected black money, even as it sought strict adherence to confidentiality and data security.