On the 16th of June, 2017, an automatic exchange of financial statement details was ratified between Switzerland and India. The Swiss Federal Council has planned for Official Data Exchange to occur in sets, with the first set to be exchanged in 2018 and the second one in 2019.
Talks Ongoing Regarding Volume of Data
The Official Data Exchange is to be exchanged between Switzerland and India, along with 40 other jurisdictions in order to empower the regions with an immediate data sharing capability. The intention of this data exchange is to fight the rising amount of black money holdings and money laundering activities in international finances and trade. The Swiss Federal Council is the topmost governing body in the country and is planning to go through with the data exchange despite the country’s otherwise stringent policies regarding data security and confidentiality. The introduction of the automatic exchange of information, or AEOI, through the Swiss Federal Council will be done once the details on the exact volumes of data are finalized. The Indian government will be notified on the precise date the data will be released for exchange.
The Fight Against Black Money Intensifies
The move is the latest occurrence in the list of activities and policies the Indian government is introducing to fight the nation’s massive issue of black money. The Indian economy is said to be severely damaged due to the black money holdings and illegal activities and the government is pulling all stops to curb this.
The AEOI will be performed in accordance to the Multilateral Competent Authority Agreement and will be turn-based. It is being developed by the Organization for Economic Cooperation and Development.