Swiss govt proposes new laws against illicit wealth in banks

Facing demands from India and other countries for banking details of persons with alleged black money in Switzerland, the European nation has proposed new rules for combating money laundering and mandating extra due diligence by banks before accepting clients’ money.
Switzerland’s Federal Council, the country’s top-most policy making body, has proposed that these norms would be put through an extensive consultation process till June 15, reports Hindustan Times.
The proposals come within days of Switzerland promising deepening of dialogue with India on administrative assistance and exchange of information about suspected illicit wealth stashed by Indians in the Swiss banks.

At the same time, Switzerland’s finance ministry has also made it clear that it would not entertain any banking information requests that are based on stolen or illegally obtained account details, while it has also refused to consider any fishing expedition for Swiss bank details.
In its latest proposals, Federal Council said it has adopted two consultation drafts – one for implementation of the revised international recommendations on combating money laundering and terrorist financing, and the second for putting in place and extended due diligence requirements should prevent untaxed assets from being accepted by financial intermediaries in Switzerland.
Last week, Switzerland’s Federal Department of Finance, the country’s finance ministry, had said in its annual report on international financial and tax matters for 2013 that requests from foreign countries would not be considered if they have been made for the purpose of ‘fishing expeditions’.
Switzerland has also refused entertaining requests that are based on information ‘obtained through acts punishable under Swiss law, such as the illegal acquisition of data’