Switzerland has ratified automatic exchange of information (AEOI) sharing with India and 40 other countries to facilitate immediate sharing of details about suspected black money. It, however, sought strict adherence to confidentiality and data security laws.
The Swiss Federal Council, the country’s top governing body, in a statement said that the protocol will be implemented next year and the first set of information is planned in 2019.
As per the draft notification approved by the council in its meeting yesterday, the decision is not subject to any referendum — which means there should be no further procedural delay in its implementation.
Black money has been a matter of big debate in India and Switzerland is perceived as one of the safest havens for the illicit wealth allegedly stashed abroad by Indians.
The decision follows hectic parleys between India and Switzerland for introduction of the AEOI on tax matters under the guidance of G20, OECD and other global organisations.
Last November India and Switzerland signed an agreement for the implementation of AEOI. The joint declaration was signed between the two countries amid the Indian government stepping up efforts to clamp down on the menace of black money.