Switzerland found India’s data security and confidentiality laws “adequate” for entering into an automatic exchange of information pact, which will open a continuous access to details about alleged black money hoarders in once secret Swiss banks.
In a detailed notification and fact sheet published in its official gazette for introduction of “automatic exchange of information relating to financial accounts with India”, the Swiss government has also cited decisions by other financial centres like Liechtenstein and Bahamas to enter into similar pacts.
Besides, Switzerland also took note of the U.S. tax authority, the Internal Revenue Service (IRS), recognising India among the countries that provide an “adequate degree” of data protection for mutual exchange of tax information.
The fact sheet and the notification also talks about Switzerland looking to explore greater access to the Indian market, including the reinsurance sector and other financial services.
The Swiss Federal Council ratified automatic exchange of financial account information with India and 40 other jurisdictions to facilitate immediate sharing of details about suspected black money.