It may be recalled that some time back, Switzerland had agreed to share banking info with India. Now, Switzerland has pointed out that it had agreed to share banking info with India since India has adequate data security and confidentiality laws. Switzerland said that it was due to this strong data security laws that it has collaborated with India on the automatic exchange of information pact. From India’s perspective, the exchange of banking info with Switzerland is considered a major success in the government’s fight against black money. Swiss banks have been the preferred choice of black money hoarders, but it will become a thing of the past when Swiss banks start sharing info with India.
The Switzerland government also cited other decisions taken by other financial hubs such as Liechtenstein and Bahamas that have also entered similar pacts about sharing of banking info. Swiss authorities also pointed out to the US tax authority, the Internal Revenue Service (IRS) that too has recognized India as having an adequate degree of data security, as may be necessary for mutual exchange of tax information. The fact sheet published by the Switzerland government also mentions that the country wants to increase its presence in India by offering new services in the reinsurance sector and other financial services.