Oct 17, 2022
Today we will discuss the Fourth set of Swiss Bank account details that India has received, in our Current Affairs editorial. Read to enhance your UPSC CSE preparation and also find the topic's relevance to the UPSC CSE syllabus.
For Prelims: Swiss bank accounts, Automatic Exchange Of Information (AEOI) agreement, Central Board of Direct Taxes (CBDT), Organisation for Economic Co-operation (OECD) & Automatic exchange of information Agreement.
For Mains: Receiving Information from Switzerland for India, The nature of Financial data, Guidelines for exchange of such sensitive banking information, Scope of India’s AEOI network, Parking Money in Swiss Banks.
Recently, India has received the fourth set of Swiss bank account details of its nationals and organizations as part of the annual information exchange.
Why it is often preferred to park money in a Swiss bank account? Examine the initiatives taken in this regard.
Read our yesterday's edition of Current Affairs on PM-DevINE
The nature of Financial data:
Guidelines for the exchange of such sensitive banking information:
Also Read: Paper on India's Poverty: World Bank
Parking Money in Swiss Banks:
Switzerland’s banking secrecy laws are the most stringent laws anywhere in the world.
Switzerland passed the Federal Act on Banks and Savings Banks, commonly known as the Banking Law of 1934 or the Swiss Banking Act, of 1934.
In the law there is Article 47, which made it a crime to reveal details or information about customers to almost anyone including the government, without their consent and in the absence of a criminal complaint.
Violators of Article 47 can get five years imprisonment.
Usefulness of Parking Money in Switzerland: Following features of Swiss banks presented an irresistible attraction for the super-rich and those who didn’t want to reveal the sources of their wealth:
Wealth became easily mobile across international borders.
The safety and stability of Swiss banks.
The parked money in these banks is located in a peaceful, politically neutral country committed to discretion.
Swiss bank accounts combine low levels of risk with very high levels of privacy.
The Swiss banks are run at very high levels of professionalism.
Opening an account in a Swiss bank is also very basic and requires basic KYC including proof of identity.
If you are targeting UPSC IAS 2023 examination, then this video by Vivek Singh Sir will help you strengthen your preparation. Watch now:
News Source: The Indian Express
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