1. Switzerland steps up efforts to tackle black money menace

Switzerland steps up efforts to tackle black money menace

Upping the vigil against illicit fund flows, Switzerland has tightened its anti-money laundering norms with new diligence rules, including greater scrutiny of ecclesiastical foundations.

By: | New Delhi | Published: November 12, 2015 9:06 PM
Black money

Upping the vigil against illicit fund flows, Switzerland has tightened its anti-money laundering norms with new diligence rules, including greater scrutiny of ecclesiastical foundations. (Thinkstock)

Upping the vigil against illicit fund flows, Switzerland has tightened its anti-money laundering norms with new diligence rules, including greater scrutiny of ecclesiastical foundations.

Besides, the Swiss government has decided to pass on costs related to international administrative assistance on tax matters to the person or financial institution concerned in case the amount is “extraordinarily high”.

Switzerland has come under international pressure, including from India, amid concerns that black money is stashed in Swiss banks, that are well known for their banking secrecies.

In recent times, the alpine nation has taken various measures to tackle the menace of illicit fund flows and now the Swiss Federal Council has adopted the Anti-Money Laundering Ordinance (AMLO).

The ordinance, which has strict provisions to keep a tab on flow of unaccounted money, would come into force from January 1, 2016.

“The new due diligence obligations and reporting duties for traders set out in the AMLA (Anti-Money Laundering Act) will be fleshed out in the new AMLO.

“They will be applied when traders accept cash payments of more than CHF 100,000 in the course of trading activities,” the Swiss government said in a release on Wednesday.

Besides, the Council has decided to improve transparency in the law on foundations whereby ecclesiastical foundations would now have to be registered in the commercial register.

“For ecclesiastical foundations which already exist, the details of this obligation will be specified in greater detail in the Commercial Register Ordinance,” the release said.

The new legal provisions on the reporting system for financial intermediaries would be implemented by amending the Ordinance on Money Laundering Reporting Office Switzerland.

Meanwhile, under a new provision in the revised Tax Administrative Assistance Ordinance, Switzerland has defined in greater detail the possibility of passing on the costs of international administrative assistance to the person or financial institution concerned.

“Under the Tax Administrative Assistance Act, the Federal Tax Administration can pass on costs if they are extraordinarily high and the person concerned or the information holder contributed substantially to the costs generated through their inappropriate behaviour.

“The new provision of the Tax Administrative Assistance Ordinance describes what is to be deemed an extraordinarily high sum and lists the components of the costs that can be passed on,” the government said in a separate release.

In February 2012, the Financial Action Task Force had come out with revised international standards concerning the combating of money laundering and terrorist financing. The Swiss Parliament had adapted various laws to these standards.

Tags: Black Money
  1. Hemen Parekh
    Nov 14, 2015 at 12:02 pm
    NETWORK OF CURRENCY NOTES ? ( A Mobile App called " BLACK-MAIL " ) While inaugurating the International Conference on " Networking the Networks " on Nov 2 , our FM Shri Jaitleyji said : " Tax evasion and money laundering will become extremely difficult in the next 1-2 years, with the global automatic exchange of information system coming into effect on a real time basis " To speed up this process and make it truly automatic / real time , I suggest resorting to the following technologies : # Internet of Things ( IoT ) As each currency note of Rs 500 / 1000 , is getting printed , embed it with microscopic RFID chips Besides communicating with each other , these chips will also transmit their existence location , through internet , to cloud-based servers of Income Tax Department This will form a " NETWORK OF CURRENCY NOTES ( NoC ) " You may like to call this Internet of Currency ( IoC ) , a sub-set of IoT ! # Internet Protocol Address System ( IP V 6.0 ) Each Rs 500 / 1000 currency note must be igned ( at the time of printing ) , its own unique Internet Address , using IP V 6.0 This IP address should be linked with the unique Serial Number printed on each note. Since IP V 6.0 , will be capable of igning " 2 * 10 to the power of 128 ", no of IP addresses , there is no danger of running out of addresses , even if we decide to extend this idea to Rs 100 currency notes ! This reform will enable the Central Government / Income Tax Department , to : * Continuously trace the movement of each of these higher denomination currency notes * Instantly locate any place ( using Google Map based GPS ) , where there is an aculation of more than Rs 1 Crore worth of currency notes Such aculation will be made to appear as a TAG CLOUD on the web site of IT Dept, like thousands of balloons floating on a map of India , capable of being drilled down to within 1 Sq Meter ! On each balloon , will appear a number announcing , " Amount of Cash here - Rs " ! This will vastly simplify the task of Anti Corruption Dept / Enforcement Dept etc But then such transparency might lead to break-down of social order / chaos It may be a better / safer / saner solution for such balloons / tag clouds to appear , on a secret Mobile App , available only to the officers of Enforcement Department ( ED ) You may want to call this app , " BLACK-MAIL " ! Of course , my suggestions may become outdated with the arrival of mobile wallets based CASHLESS SOCIETY , by 2030 In the meantime , should Shri Arun Jaitleyji and Shri Ravi Shankar Prasadji , want this implemented , it can be done in 6 months , at one tenth the cost of MoM ( Mars Orbital Mission ) , ie approx Rs 43 Crores All they have to do , is to tell the bureaucracy : " Since we need not depend upon Opposition parties to p a bill in Rajya Sabha , please go ahead and implement this - in less than 6 months " -------------------------------------------------------------------------------------------------- hemen parekh 04 Nov 2015 B2BmessageBlaster
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    1. Hemen Parekh
      Nov 23, 2015 at 6:59 am
      Thank You , Policy Makers ! Dear Policy Makers : I just came across following news report: ------------------------------------------------------------------------------------------------------ Financial Intelligence Unit to generate reports on black money suspects in 72 hours ( Source : Economic Times / 22 Nov 2015 ) NEW DELHI: Government has bolstered the capabilities of the elite Financial Intelligence Unit (FIU), which can now dish out volumes of data on suious transactions in 72-hours flat and gain access to " secret database of offenders maintained by various law enforcement agencies in the country. " Earlier, when an agency wanted to get any information on financial transactions and other similar details on enies on its scanner the time taken used to be between a fortnight to 20 days. The elite financial snoop wing under the Union Finance Ministry has switched to full electronic mode for exchange of data, from the earlier existing paper-based pattern, with all probe and enforcement agencies of the country like the Income Tax department, CBI, ED, DRI and Intelligence Bureau among others, beginning November 1. ------------------------------------------------------------------------------------------------------- Thank you for listening - and acting on my following suggestion , sent to you sometime back ( Source : > Blogs / E - Governance / 03 April 2014 ) E - Governance ? Can e-Governance help eliminate corruption ? Most certainly Look at the following , partial list of Central and State Agencies set up to fight fraud , money-laundering , corruption , tax-evasion , economic crimes etc : * Public Accounts Committee ( PAC ) * Central Vigilance Commission ( CVC ) * Central Information Commission ( CIC ) * Research and Analysis Wing ( RAW ) * Serious Fraud Investigation Office ( SFIO ) * Information Bureau ( IB ) * Economic Offence Wing ( EOW ) * Central Bureau of Investigation ( CBI ) * Department of Revenue Intelligence ( DIR ) * Comptroller and Auditor General ( CAG ) * Anti Corruption Bureaus ( States ) ( ACB ) * Enforcement Directorate ( ED ) * Lok Ayukts ( States ) * Lok Pal ( Central ) Despite such an army of Agencies , how do corrupt manage to get away ? Or , in case caught , manage to delay delivery of punishment for years ? No doubt , there must be several reasons , including , inter - agency rivalry to get credit - something difficult to eliminate altogether But , I believe , the most important reason is : Lack of a COMMON / COMPUTERIZED database of all offences / cases / persons being investigated, - which is readily " Accessible " to all of these Agencies , all over the country ( 24 * 365 ) Already , every Agency compiles huge dossiers on " Suspects " in its own " Departmental Database " , which is never shared with other Agencies , leading to , * Huge amount of duplication of efforts / information * Fractured / scattered profiles of " Suspects " * Enormous waste of time / resources What will help ? * Dismantling of individual departmental databases * Merging of all Agency-wise databases into a SINGLE / UNIQUE database * All Agencies to enter their findings / data / info into this COMMON database , with nothing preserved on local computers * All data-entry FORMS to be ONLINE . No paper forms at all * All local computers connected to ultra-secure Network ( Encrypted ) * " Access Rights " to individuals , based on Biometric Identification Will BJP want to make this , a prominent promise in their Poll-Manifesto , likely to be released on 7th April ? ( Congress / AAP missed this boat ! ) It is high time political parties stop talking of motherhood in vague terms and start telling the voters , " If you vote us to power , this is precisely what we will do , to bring about E-GOVERNANCE - and do it within 6 months of uming power " * hemen parekh ( 04 April 2014 / Mumbai ) .. > Blogs -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- hemen parekh 23 Nov 2015 B2BmessageBlaster
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