Finance Ministry Refutes Reports On Alleged Black Money

Finance Ministry refutes reports of an increase in deposits of Indians in Swiss Bank, know what they said.

The Finance Ministry has refuted recently published news media reports on alleged black money held by Indians in Switzerland. The ministry said this by tweeting on Saturday.

The ministry said information has been sought from the Swiss authorities to verify the increase or decrease in deposits in Swiss banks.

The ministry issued a press release and said that on Friday, many such reports were published in the media.

In these reports, it is said that the money of Indians deposited in Swiss banks has increased to Rs 20,700 crore by the end of the year 2020, which was 6,625 crore by the end of 2019.

Media reports said that in contrast to the declining trend for two years, there has been an increase in the money of Indians deposited in Swiss banks during this period.

Finance Ministry refutes reports: It was also said in media reports that this is the biggest figure of deposits in the last 13 years.

The ministry further said that media reports point to the fact that the reported figures are official figures reported by banks to the Swiss National Bank (SNB) and do not indicate the quantum of alleged black money held by Indians in Switzerland.

Further, these figures do not include money that Indians, NRIs, or others may have in Swiss banks in the name of third-country entities.

The ministry further said, “However, the amount deposited by the customers has actually decreased since the end of the year 2019.

Funds held through fiduciary institutions have also fallen by more than half since the end of 2019. The biggest increase is in “other amounts owed from customers”.

These are in the form of bonds, securities, and various other financial instruments.

The ministry further said in the release, ‘Let us inform that India and Switzerland are signatories to the Multilateral MAAC and both the countries have also signed the Multilateral Competent Authorization Agreement (MCAA).

According to which both the countries Automatic Exchange of Information (AEOI) for sharing of annual financial account information is taking place from the calendar year 2018 onwards.

“The exchange of financial account information in respect of residents of the two countries took place in the years 2019 and 2020 as well,” the ministry said.

Looking at the existing legal regime for the exchange of financial account information (which has a significant deterrent effect on tax evasion through undeclared assets abroad) deposits in Swiss banks do not appear to have any significant potential for growth.

Significantly, the Congress on Friday surrounded the government over reports of increasing deposits of Indians in Swiss banks.

The party had said on Friday that the government should bring a white paper and tell the countrymen whose money is this and what steps are being taken to bring back the black money stashed in foreign banks.