Indian money in Swiss banks
Indian money in Swiss banks falls 5.8%; total foreign deposits up 3.1%. While overall total foreign deposits rose by 3.1 per cent to CHF 1.44 trillion from CHF 1.39 trillion in 2018, China saw a major 13.1 per cent jump in money parked by its residents, from CHF 13.5 billion in 2018 to CHF 15.3 billion.
- India’s neighbour Pakistan witnessed a sharp decline in the money parked by its residents in Switzerland last year as it declined by 45 per cent from CHF 745 million in 2018 to CHF 410 million.
- The latest data from Zurich-based Swiss National Bank (SNB) released for the year 2019 shows a sharp rise in deposits by American residents in Swiss banks as it rose by CHF 17.8 billion, or 12.5 per cent, to CHF 160 billion.
- Even as some nations witnessed a jump in 2019, there has been an overall decline in money parked by residents across countries in Swiss banks since the year of the global financial crisis.
- While total foreign deposit in Swiss banks hit an all-time high of CHF 2.43 trillion in 2007, they have declined since then. While overall foreign deposits have fallen 41 per cent since 2007, that for India has declined by 79 per cent since 2007. For India, the total liabilities of Swiss banks stood highest in 2006 at CHF 6.46 billion.
- The SNB data comes after the first set of details of bank accounts held by Indian nationals were shared under the new framework for automatic exchange of information between Switzerland and India to help check the black money menace last September.
- While Switzerland began sharing foreign client details on evidence of wrongdoing provided by India and some other countries, it has agreed to further expand its cooperation on India’s fight against black money with the new pact for automatic exchange of information (AEOI).
- India and Switzerland had, for automatic sharing of financial account information, signed a Joint Declaration on November 22, 2016 for activation of AEOI in tax matters between the two nations.
- The use and disclosure of the information received is governed by the confidentiality provisions of the India-Switzerland tax treaty.