India accounts for nearly 42 per cent of entire gold and silver leaving Switzerland shores — biggest for any single nation, as a debate continues on alleged black cash stashed by Indians in banks.
It’s taken the entire Swiss exports thus far in 2014 to 32.1 billion Swiss franc (about Rs 2.15 lakh crore). Of this, shipments to India have attained nearly Rs 50,000 crore (7.3 billion Swiss franc).
The most recent data comes at a period when India has stepped up pressure on Switzerland to share info on alleged stashing of cash by Indians in banks.
Switzerland has given to cooperate in the fight against black money in India and contains also encouraged an Indian delegation to see with Berne for conversations in this aspect.
However, a brand new strategy of ‘layering’ through diamond trade and gold has come to light at banks to thwart any attempt for identification of actual beneficiary owners of funds entrusted with the, government and banking sources have mentioned.
An increasing feeling is that the part of gold and diamond trade is used from Swiss banks to route funds and other destinations.
At precisely the same time, the banks have got undertakings signed by their customers, where the customer agrees to consider responsibility for any possible administrative or regulatory compliance with international standards.
‘Layering’ is a vital stage in money laundering and involves transferring illicit funds around the fiscal system through the paper path to be complicated by a complex series of deals.
This layering generally happens between the first stage — placement of black money in the fiscal system both in cash vaults, or through some cash or sham fiscal transactions — and before the final ‘consolidation’ period when money is put-back into the financial system through various trades for the advantage of its final recipient.
Under pressure that was global, Switzerland agreed earlier this year to supply state-wise breakdown of its gold commerce.
The gold exports to India stood at less than one-billion Swiss francs, but has been persistently rising since then.
By comparison, Switzerland’s general bullion exports had grown in February to over 8 billion Swiss francs, from about 7 billion Swiss francs, but dropped for three consecutive months then till 3.7 billion Swiss francs in-May.
After India, Turkey arrived a distant second in June with less than 75000 500-million Swiss franc of bullion export that was Swiss. Other major destinations were major markets like China, USA, Britain, France and Germany, as also United Arab Emirates, Singapore and Hong-Kong.