Black Money: Swiss Bank Agrees To Help India
Black Money: Swiss Bank Agrees To Share Info With IndiaWell, it is exciting to see a plethora of reforms happening in the nation and the extended hand by the swiss bank to help India with information comes as a much welcome news. With this information, we can finally look at a few reforms and hopefully find a way to tighten the money laundering and black money which is in circulation in the country
Why do people prefer the Swiss banks?
Swiss banks are famous for their security and stability. It is also quite popular for secrecy that it does not leak out the information about the clients or their assets to general public or governments. At one end it is a highly commendable system but at the other it does offer a challenge for certain countries like India. There have been reports which mention billions of dollars being placed in the Swiss accounts and most of this being a great way to save the black money accumulated through illegal modes.
Why Is the issue so important?
India has been trying for a long time to gain access to information about the accounts, esp the ones which have a huge amount saved. But this was working against the secrecy policy of swiss banks which made it difficult for India to gain information about the same. However with the recent move, India will be in a position to gain access to information about the ones who have huge amounts saved in the swiss bank and they will be open for investigation provided they have huge disproportionate assets.
How is it going to be of help?
Well, with this change, the swiss bank is no longer going to be a safe haven for saving the black money, which means the affluent people here or the ones who are hoarding black money will either have to rely on the local banks or use different modes for saving. If they use the local banks, their incomes are liable for scrutiny and if they have disproportionate assets, they can be further questioned. No wonder information is the key to set things in order.
What if we are able to track all the black money?
Well, if there is no safe haven for black money, it acts as a very strong deterrent against corruption. For even if these people in top positions take bribe and are corrupt, they don’t have a safe place to store it – which means they have to spend it or save it. If they spend it, it attracts attention from people and they can be prosecuted or at least it helps in circulation of money within the country which certainly helps the local economy.
Well things sure look optimistic and I hope this opens up for a few more inspiring changes for the country.
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That is a real good news and you have dealt with the topic with so much simple clarity
Thank you Datta :). I think it is still a long way to achieve any measurable progress in that front but it sure is a wonderful start :)
It’s a good news for us.
True Alok, it has taken more than about 10 years now for this to be done. It will be interesting to see how they take it ahead and make use of it..