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Black Money: Switzerland start consultations on AEOI with India

Switzerland says the automatic exchange of information with countries will be implemented based on MCAA

Press Trust of India  |  Berne | New Delhi 

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Moving ahead on automatic sharing of details on suspected black money, on Thursday initiated its statutory consultation process for bringing into force Automatic Exchange of Information (AEOI) on tax matters with India and some other countries from January 1, 2018. The process will continue till March 15, 2017, Swiss Federal Department of Finance (FDF) said in a statement. "The with these countries should enter into force on January 1, 2018 so that data can start to be exchanged in 2019," it added. The launch of consultation process follows signing of a Joint Declaration between India and on November 22 for implementation of AEOI, which provides that both countries will start collecting data in accordance with the global standards in 2018 and exchange it from 2019 onwards. on Thursday also launched consultations on introducing with Andorra, Argentina, Barbados, Bermuda, Brazil, British Virgin Islands, Cayman Islands, Chile, Faroe Islands, Greenland, Israel, Mauritius, Mexico, Monaco, New Zealand, San Marino, Seychelles, South Africa, Turks and Caicos Islands and Uruguay. said, "The introduction of the with these countries confirms Switzerland's international commitment to implementing the standard. "is thus extending its network of partner states. This will contribute to strengthening the competitiveness, the credibility and integrity of Switzerland's financial centre." It added, "Important criteria for the acceptance of these countries were in particular the high demands in terms of adherence to the principle of speciality and the safeguarding of confidentiality for the data delivered, which are prerequisites for the introduction of the " said the automatic exchange of information with these countries will be implemented based on the Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information (MCAA).

The is based on the international standard for the exchange of information developed by the is already in the process of introducing in 2017 with all of the EU states including Gibraltar and with Australia. The same applies to Iceland, Norway, Japan, Canada, South Korea and the British crown dependencies of Jersey, Guernsey and the Isle of Man. "The entry into force of the with these countries and territories is conditional on approval by Parliament in the 2016 winter session," said. has been at the centre of the debate on allegedly stashed by Indians abroad and was known for very strong banking secrecy walls till a few years, before they began wilting under global pressure.

First Published: Thu, December 01 2016. 15:55 IST