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Banks asked to keep a check on illegal asset flows: Switzerland

News:

To act against black money menace, Switzerland will put in place stricter due diligence norms for banks to prevent inflow of illicit assets into the country.

Description:

  • Banks would have to terminate their relationship with existing clients in case they are unable to provide the required tax compliance proof for current assets held by them.
  • Banks and other financial intermediaries would have to comply with enhanced due diligence requirements when accepting assets in order to prevent the inflow of untaxed assets.

 Steps:

  • In this regard, the Federal Council has referred a corresponding dispatch on amending the Anti-Money Laundering Act to Parliament.
  • Switzerland is making public names, including that of Indians, among scores of foreign nationals with Swiss bank accounts, for being probed in their respective countries.
  • The new norms will not be applicable to clients whose country of origin has an MCAA with Switzerland. This also includes US clients, as FATCA effectively has an MCAA.

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