Black wealth of india and

swiss banks

Black Money

• Unaccounted-for and untaxed cash generated by dealings in a black economy, black market, or organized crime.

• HAWALA• GHOTALA

Swiss Banks

• Banking in Switzerland is characterised by stability, privacy and protection of clients' assets and information

• All banks in Switzerland are regulated by Swiss Financial Market Supervisory Authority (FINMA)

• Swiss Interbank Clearing (SIC). The system is supervised by the Swiss National Bank and is operated via a joint venture.SIC handled over 250 million transactions in 2005, with a turnover value of 41 trillion Swiss francs.

Swiss Banks

• According to the CIA World Factbook, Switzerland is "a major international financial center vulnerable to the layering and integration stages of money laundering; despite significant legislation and reporting requirements, secrecy rules persist and nonresidents are permitted to conduct business through offshore entities and various intermediaries..."

Swiss Banks

• A Federal Bureau of Investigation anti-terrorism official noted that Switzerland was one of several countries to participate in joint task forces targeting financing of Al-Qaeda terrorist cells; a former Assistant Secretary of the Treasury praised Swiss cooperation and the country's assistance in the finding and freezing of terrorist and Iraqi assets.

Swiss Banks

• In January 2003, the United States Department of Treasury announced a new information-sharing agreement under the already extant U.S.-Swiss Income Tax Convention;the agreement was intended to facilitate more effective tax information exchange between the two countries.

• However, Swiss policy has continued to come under international criticism, and in March 2009 Switzerland agreed to renegotiate more effective tax cooperation with the United States and other countries.

INDIAN BLACK MONEY

• Black money in Swiss banks -- Swiss Banking Association report, 2006 details bank deposits in the territory of Switzerland by nationals of following countries:

Top five •

India $1456 billionRussia $ 470 billionUK $390 billionUkraine $100 billionChina $ 96 billion

HOW MUCH IS $1456 billion

• With this amount 45 crore poor people can get Rs 1,00,000 each.

• This amount is about 13 times larger than the country’s foreign debt.

• If this surplus amount is invested in earning interest, the amount of interest will be more than the annual budget of the Central government.

• Tax on money Rs 70 lakh crore, more than India's national income of around Rs 50 lakh crore.

What U.S. did?

• Appoint 800 agents to collect information and avidence

• Political pressure

• Treaty with Swiss govt.

What INDIA didn’t

• Team for issue

• Political will power.

Conclusion

• We need a Govt. which emphasize more on this issue.

• Leaders who are not corrupt.

• This is possible that Swiss Govt. hand over the details of indian account holders because they already given these kind of details to US.

THANK YOU

KAPIL SHARMA