Swiss money trail: From gold & diamond to stocks & bitcoins

June 29, 2014

Swiss GoldZurich/New Delhi, Jun 29: As Switzerland commits to cooperate in India's fight against black money, a new strategy of 'layering' through gold and diamond trade has come to light at Swiss banks to thwart any attempt for identification of real beneficiary owners of funds entrusted with them.

The activities and avenues being used for such 'layering' include diamond trade, gold and other jewellery exports, stock market transactions through use of complex funds, as also the fund transfer through new-age virtual currencies like bitcoin.

At a time when Switzerland has been facing intense pressure to act on the alleged use of Swiss banks for stashing black money by Indians, the government data of the Alpine nation shows that India has become the top destination for its gold exports with trade worth close to 6 billion Swiss francs (about Rs 40,000 crore) since the beginning of this year.

According to government and banking sources, there is a growing suspicion that a portion of gold and diamond trade is being used to route funds from Swiss banks to India and other destinations.

At the same time, the banks in Switzerland are now getting an undertaking signed by their clients, where the customer agrees to take responsibility for any possible regulatory or administrative compliance with international norms.

The development regarding alleged use of diamond and gold trade, as also stock market transactions and bitcoins, for layering of black money comes at a time when there has been an intense debate about Swiss authorities' assistance in India's fight against black money, which has been a politically sensitive issue in the country.

A senior Swiss government official recently said that Switzerland was ready to help India with data under its 'spontaneous information exchange' initiative on a proactive basis, although the European country continues to resist any information-sharing on requests based on 'stolen data'.

The statement triggered a major debate and Switzerland's Secretariat for International Financial Matters (SIF) issued a public statement on this matter. Some reports went on to suggest that Swiss authorities have already shared a list of Indians alleged to have stashed black money, but any such development was denied by both the government.

When contacted, SIF spokesperson Mario Tuor confirmed that the Swiss authorities "are in contact with the Indian government", but refused to share further details.

In reply to emailed queries, Tuor said that Switzerland is looking forward to working together with the new government in India in its fight against tax evasion.

Tuor, however, refused to comment on his reported remarks that Switzerland has not shared any list with India, neither it was preparing one for sharing with the Indian authorities.

The other routes being tapped by some Swiss bankers and their clients for 'layering' of their funds include art works, as also virtual currencies, they added.

'Layering' is generally second stage of money laundering process and this involves moving illicit funds around the financial system through a complex series of transactions to complicate the paper trail.

This 'layering' typically takes place between the first stage -- 'placement' of black money in the financial system either in cash vaults, or through a series of cash or sham financial transactions -- and before the final 'integration' stage when money is put back into the financial system through various transactions for the benefit of its final recipient.

The latest data compiled by Switzerland's Federal Customs Administration (FCA) shows that exports to India of gold, silver and coins to India has been rising consistently since January this year (981 million Swiss francs) and reached 1.2 billion Swiss francs (about Rs 8,000 crore) in May 2014.

Moreover, India accounted for over 32 per cent of entire Swiss exports of such items during May, up from just about 14 per cent at the beginning of this year. In the process, India has overtaken China as biggest destination for Swiss gold exports. Interestingly, Switzerland's overall gold export figures have fallen in recent months, but exports to India are rising.

Under global pressure, Switzerland decided earlier this year to provide country-wise breakdown of its gold trade.

The Financial Action Task Force (FATF), a global financial crimes combating body, had also said in one of its recent reports that India is one of the five countries where instances have been found that trade accounts of diamond business are being used to launder illegal funds.

Switzerland is also in the process of easing its various regulations, including those related to sharing of information with foreign jurisdictions in cases of suspected tax evasion and other financial crimes.

When asked whether India would be a beneficiary for automatic information exchange once a revised Tax Administrative Assistance Act comes into force in August, SIF spokesperson declined to give any direct answer and said it would depend on various developments within the country.

"Switzerland is actively taking part in international efforts aimed at better combating tax fraud and evasion such as the development of a worldwide standard for automatic exchange of information. Like India, Switzerland has endorsed the declaration on automatic exchange of information..." Tuor said.

On specific query that whether India would benefit, the spokesperson said that Switzerland would first wait until the new global standard on automatic exchange in tax matters has been defined by the OECD and accepted by the G20.

"Secondly, the Swiss government will propose how to implement the new standard in Switzerland. Thirdly, the Swiss parliament will decide on the government's proposals... I can't give you any further details," Tuor said.

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Agencies
May 23,2020

Washington, May 23: President Donald Trump has labeled churches and other houses of worship as “essential" and called on governors nationwide to let them reopen this weekend even though some areas remain under coronavirus lockdown.

The president threatened Friday to “override” governors who defy him, but it was unclear what authority he has to do so.

“Governors need to do the right thing and allow these very important essential places of faith to open right now — for this weekend," Trump said at a hastily arranged press conference at the White House. Asked what authority Trump might have to supersede governors, White House press secretary Kayleigh McEnany said she wouldn't answer a theoretical question.

Trump has been pushing for the country to reopen as he tries to reverse an economic free fall playing out months before he faces reelection. White evangelical Christians have been among the president's most loyal supporters, and the White House has been careful to attend to their concerns throughout the crisis.

Following Trump's announcement, the Centers for Disease Control and Prevention released new guidelines for communities of faith on how to safely reopen, including recommendations to limit the size of gatherings and consider holding services outdoors or in large, well-ventilated areas.

Public health agencies have generally advised people to avoid gatherings of more than 10 people and encouraged Americans to remain 6 feet (1.8 meters) away from others when possible. Some parts of the country remain under some version of remain-at-home orders.

In-person religious services have been vectors for transmission of the virus. A person who attended a Mother's Day service at a church in Northern California that defied the governor's closure orders later tested positive, exposing more than 180 churchgoers. And a choir practice at a church in Washington state was labeled by the CDC as an early “superspreading" event.

But Trump on Friday stressed the importance of churches in many communities and said he was “identifying houses of worship — churches, synagogues and mosques — as essential places that provide essential services.”

“Some governors have deemed liquor stores and abortion clinics as essential” but not churches, he said. “It's not right. So I'm correcting this injustice and calling houses of worship essential." “These are places that hold our society together and keep our people united,” he added.

Dr. Deborah Birx, coordinator of the White House coronavirus task force, said faith leaders should be in touch with local health departments and can take steps to mitigate risks, including making sure those who are at high risk of severe complications remain protected.

“There's a way for us to work together to have social distancing and safety for people so we decrease the amount of exposure that anyone would have to an asymptomatic," she said.

A person familiar with the White House's thinking who spoke on condition of anonymity to discuss internal deliberations said Trump had called the news conference, which had not been on his public schedule, because he wanted to be the face of church reopenings, knowing how well it would play with his political base.

Churches around the country have filed legal challenges opposing virus closures.

In Minnesota, after Democratic Gov. Tim Walz this week declined to lift restrictions on churches, Roman Catholic and some Lutheran leaders said they would defy his ban and resume worship services. They called the restrictions unconstitutional and unfair since restaurants, malls and bars were allowed limited reopening.

Some hailed the president's move, including Kelly Shackelford, president of the conservative First Liberty Institute.

“The discrimination that has been occurring against churches and houses of worship has been shocking," he said in a statement. "Americans are going to malls and restaurants. They need to be able to go to their houses of worship.” But Rabbi Jack Moline, president of Interfaith Alliance, said it was “completely irresponsible” for Trump to call for a mass reopening of houses of worship.

“Faith is essential and community is necessary; however, neither requires endangering the people who seek to participate in them,” he said.

“The virus does not discriminate between types of gatherings, and neither should the president." Rhode Island Gov. Gina Raimondo, a Democrat, made clear that churches and other houses of worship will not resume in-person services in her state until at least next weekend and said she was skeptical Trump had the authority to impose such a requirement.

“It's reckless to force them to reopen this weekend. They're not ready,” she said. “We've got a good plan. I'm going to stick with it.” New Hampshire Gov. Chris Sununu, a Republican, said he would review the federal guidance, while maintaining a decision rests with him.

"Obviously we'd love to get to the point where we can get those open, but we'll look at the guidance documents and try to make some decisions rather quickly, depending on what it might say,” he said. “It's the governor's decision, of course.”

The CDC more than a month ago sent the Trump administration documents the agency had drafted outlining specific steps various kinds of organizations, including houses of worship, could follow as they worked to reopen safely.

But the White House dragged its feet, concerned that the recommendations were too specific and could give the impression the administration was interfering in church operations.

The guidance posted Friday contains most of the same advice as the draft guidance. It calls for the use of face coverings and recommends keeping worshippers 6 feet from one another and cutting down on singing, which can spread aerosolized drops that carry the virus.

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Agencies
July 8,2020

Washington D.C, Jul 8:  US Secretary of State, Mike Pompeo on Tuesday (local time) announced visa restrictions on some Chinese officials under the Reciprocal Access to Tibet Act, 2018.

"Today I am announcing visa restrictions on PRC government and Chinese Communist Party officials determined to be "substantially involved in the formulation or execution of policies related to access for foreigners to Tibetan areas," pursuant to the Reciprocal Access to Tibet Act of 2018," Pompeo said.

"Access to Tibetan areas is increasingly vital to regional stability, given the PRC's human rights abuses there, as well as Beijing's failure to prevent environmental degradation near the headwaters of Asia's major rivers," he said.

The US Secretary of State pointed out that Beijing has continued "systematically to obstruct travel to the Tibetan Autonomous Region (TAR) and other Tibetan areas" by U.S. diplomats and other officials, journalists, and tourists, while PRC officials and other citizens enjoy far greater access to the United States.

"The United States will continue to work to advance the sustainable economic development, environmental conservation, and humanitarian conditions of Tibetan communities within the People's Republic of China and abroad," he said.

Pompeo said US also remains "committed to supporting meaningful autonomy for Tibetans, respect for their fundamental and unalienable human rights, and the preservation of their unique religious, cultural, and linguistic identity".

"In the spirit of true reciprocity, we will work closely with the U.S. Congress to ensure U.S. citizens have full access to all areas of the People's Republic of China, including the TAR and other Tibetan areas," he said.

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News Network
June 17,2020

Beijing, Jun 17: Beijing's airports cancelled more than 1,200 flights and schools in the Chinese capital were closed again on Wednesday as authorities rushed to contain a new coronavirus outbreak linked to a wholesale food market.

The city reported 31 new cases on Wednesday while officials urged residents not to leave Beijing, with fears growing about a second wave of infections in China, which had largely brought its outbreak under control.

Tens of thousands of people linked to the new Beijing virus cluster -- believed to have started in the sprawling Xinfadi wholesale food market -- are being tested, with almost 30 residential compounds in the city now under lockdown.

At least 1,255 scheduled flights were cancelled Wednesday morning, state-run People's Daily reported, nearly 70 percent of all trips to and from Beijing's main airports.

The outbreak had already forced authorities to announce a travel ban for residents of "medium- or high-risk" areas of the city, while requiring other residents to take nucleic acid tests in order to leave Beijing.

Meanwhile, several provinces were quarantining travellers from Beijing, where all schools -- which had mostly reopened -- have been ordered to close again and return to online classes.

"The epidemic situation in the capital is extremely severe," Beijing city spokesman Xu Hejian warned Tuesday.

Mass testing under way

Officials have closed 11 markets and disinfected thousands of food and beverage businesses in Beijing after the outbreak was detected.

The city has now reported 137 infections over the last six days, with six new asymptomatic cases and three suspected cases on Wednesday, according to the municipal health commission.

An additional two domestic cases, one in neighbouring Hebei province and another in Zhejiang, were reported by national authorities on Wednesday, while there were 11 imported cases.

Authorities have so far banned group sports, ordered people to wear masks in crowded enclosed spaces, and suspended inter-provincial group tours in response to the outbreak.

Officials said that since May 30, more than 200,000 people had visited Xinfadi market, which supplies more than 70 percent of Beijing's fruit and vegetables.

More than 8,000 workers there were tested and quarantined.

Until the new outbreak, most of China's recent cases were nationals returning from abroad as COVID-19 spread globally, and the government had all but declared victory against the disease.

China's Center for Disease Control and Prevention said Monday that the virus type found in the Beijing outbreak was a "major epidemic strain" in Europe.

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