BJP had in its poll manifesto promised a war on black money
stashed abroad and the Modi government ordered setting up of the SIT
Switzerland’s
topmost financial sector watchdog FINMA has said that India has “threatened” to
launch criminal investigations if the Berne-based agency did not share details
of unaccounted money stashed in secret bank accounts.
“Germany, France, Belgium and Argentina have followed
the US in launching high-profile criminal investigations, while Israel and
India are threatening to do so,” Swiss Financial Market Supervisory Authority
or FINMA, the Alpine nation’s regulator for banks, insurance companies and
financial market institutions, said in its latest annual report.
“FINMA is keeping a close eye on these proceedings,
deploying both supervision and, where necessary, enforcement to ensure that
banks adequately assess, manage and limit their legal and reputational risks in
this area,” the report said.
The agency declined to share specific details about
India’s communication with the Swiss regulator, but obliquely hinted that if
found to have violated laws, it was open to crackdown on banks for hiding
information.
“In general, FINMA does not comment on questions
regarding international cooperation with particular countries,” FINMA
spokesperson Vinzenz Mathys told HT in an emailed response.
“Swiss anti-money-laundering regulation sets out clear
rules for the handling of client relationships with politically exposed
persons. If FINMA is aware of institutions that do not comply with this
regulation, it will take action in order to restore compliance with the law,”
Mathys said.
“We have asked them (FINMA) very clearly to provide us
full names and details in respect of the HSBC accounts,” a senior finance
ministry official told HT, requesting not to be identified.
In October, the government had handed over to the
Supreme Court a list of 628 entities whose names feature in a list of HSBC
account holders in Geneva, which France had handed over to India in 2011.
Viewed as going hand in hand with corruption, “black
money” has been a hot political issue.
Days after assuming office, the Narendra Modi-led
government ordered setting up of a Special Investigation Team in line with a
Supreme Court order last year.
The team’s mandate has since been expanded to also
focus on the parallel economy thriving at home.
India has also offered a “cash reward” to Herve
Falciani, a former HSBC Bank employee-turned-whistleblower, for securing fresh
information on unaccounted money parked in foreign bank accounts.
The 43-year-old Paris-based Falciani has hinted that
he has more information against Indians who have stowed away money in
Switzerland and other principalities known for strong banking secrecy laws.
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