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
January 10,2020

New York, Jan 10: The US's National Transportation Safety Board (NTSB) announced that it has accepted an invitation from Tehran to participate in its investigation into the crash of a Ukrainian plane amid speculations that an Iranian missile might have brought down the plane.

The federal agency said in a statement on Thursday that the Iran Civil Aviation Organization has notified them that they could take part in the investigation of the plane crash that occurred shortly after taking off from Tehran on Wednesday, killing all 176 people on board, reports the Efe news.

"The NTSB has designated an accredited representative to the investigation of the crash," said the independent US government agency tasked with investigating transport accidents.

Since the aircraft was a US-made Boeing 737-800, international regulations allow Washington to be a part of the accident investigation.

However, it remains unclear to what extent the NTSB representative will be able to play an active role in the probe, as US sanctions complicate cooperation with Iran, and the two countries have no diplomatic relations.

The NTSB announcement came hours after US intelligence sources told several media outlets that the Kiev-bound Ukrainian International Airlines (UIA) flight 752 could have been accidentally shot down by an Iranian missile.

Canadian Prime Minister Justin Trudeau later confirmed that his government had "evidence" indicating that the aircraft "was shot down by an Iranian surface to air missile", although he added it may have been unintentional.

The accident occurred on the same day after Iran launched more than a dozen ballistic missiles at two US military bases in Iraq, in retaliation for the killing of Iranian Major General Qasem Soleimani in an American drone attack in Baghdad on January 3.

However, the Iranian authorities have denied that they had accidentally shot down the plane and claimed the accusations were a part of a psychological warfare campaign against Tehran.

Iranian foreign ministry spokesman Abbas Mousavi said they welcomed the presence of experts from countries whose citizens have died in the tragic accident, and requested Trudeau and any other government to provide any information they had regarding the crash.

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News Network
February 16,2020

Munich, Feb 16: Iran's foreign minister said Saturday that US President Donald Trump is receiving bad advice if he believes an American "maximum pressure" campaign against his country will cause the government in Tehran to collapse.

Foreign Minister Mohammad Javad Zarif told a group of top defense officials and diplomats at the Munich Security Conference that the information provided to the president has dissuaded Trump from accepting offers from other leaders to mediate between Washington and Tehran.

"President Trump has been convinced that we are about to collapse so he doesn't want to talk to a collapsing regime," Zarif said.

To support his argument, the Iranian minister cited Trump's decision to pull out unilaterally in 2018 from Iran's nuclear deal with the US and other world powers. Trump said the landmark 2015 accord didn't address Iran's ballistic missile program or regional activities and needed to be renegotiated.

Since then, the Trump administration's re-imposition of US sanctions in a campaign of so-called "maximum pressure" have taken a severe toll on the Iranian economy and sent Iran's currency plunging.

"I believe President Trump, unfortunately, does not have good advisers," Zarif said. "He's been wanting for Iran to collapse since he withdrew from the nuclear deal." Zarif also said the killing of Iranian Gen. Qassem Soleimani in a US drone strike in Iraq on January 3 was a miscalculation by Washington that has galvanized support for Iran instead of increasing pressure on the regime.

The Iran nuclear deal, known as the Joint Comprehensive Plan of Action or JCPOA, promised Iran economic incentives in exchange for curbs on its nuclear program. It was intended to prevent Tehran from developing a nuclear bomb, which Iran insists it does not want to do.

Since the US withdrawal, the deal's other signatories - Germany, France, Britain, Russia and China - have unsuccessfully struggled to come up with ways to offset the effects of the new American sanctions.

Washington has pressured the other countries - so far without success - to abandon the deal entirely US Secretary of State Mike Pompeo said at the Munich Security Conference earlier Saturday that while there may be disagreements on what to do with the JCPOA, "when I talk to my counterparts here in Europe, everybody gets it."

"Everyone understands that these are folks who continue to build out their nuclear program," Pompeo said. "So there's a common understanding about the threat; we have tactical differences on how to proceed."

In recent months, Iran has steadily violated the limitations the deal placed on the amount of enriched uranium and heavy water it can stockpile, the number and type of centrifuges it can operate, and the purity of the uranium it enriches.

Iranian officials insist the moves are intended only to put pressure on the countries that remain part of the deal to provide economic help to Iran and that all the measures taken are fully reversible.

Zarif rejected Trump's suggestion of negotiating a new deal, saying the one negotiated during the Obama administration was the only vehicle for talks on Iran's nuclear program.

"There is no point in talking over something you already talked about. You don't buy a horse twice," he said.

"It's not about opening talks with the United States. It's about bringing the United States to the negotiating table that's already there," Zarif said.

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News Network
April 8,2020

Washington, Apr 8: President Donald Trump has threatened to put a "very powerful" hold on US' funding to the World Health Organization, accusing the UN agency of being "very China centric" and criticising it for having "missed the call" in its response to the coronavirus pandemic.

Trump slammed the global health agency for its early guidance aimed at countering the international spread of the coronavirus.

"We're going to put a hold on money spent to the WHO. We're going to put a very powerful hold on it and we're going to see. It's a great thing if it works. But when they call every shot wrong, that's no good," Trump told reporters at his daily White House news conference on Tuesday.

The Geneva-headquartered World Health Organization (WHO), receives vast amounts of money from the United States.

"We pay for a majority or the biggest portion of their money. They actually criticized and disagreed with my travel ban at the time I did it. They were wrong. They've been wrong about a lot of things. They had a lot of information early and they didn't want to - they're very - they seem to be very China centric," Trump said.

The president said his administration was going to look into the US funding to the WHO.

"We give a majority of the money that they get, and it's much more than the USD 58 million. USD 58 million is a small portion of what they've got over the years. Sometimes they get much more than that. Sometimes it's for programs that they're doing, and-it's much bigger numbers. If the programmes are good, that's great as far as we're concerned," he said.

"But we want to look into it, WHO, because they called it wrong. They (WHO) called it wrong. They missed the call. They could've called it months earlier. They would have known and they should have known and they probably did know. So, we'll be looking into that very carefully, and we're going to put a hold on money spent to the WHO," Trump said.

Meanwhile, Senator Jim Risch, chairman of Senate Foreign Relations Committee, called for an independent investigation into the WHO's handling of the COVID-19 response.

"The WHO has failed not only the American people, it has failed the world with its flagrant mishandling of the response to COVID-19," said Risch.

WHO Director general Tedros Adhanom Ghebreyesus' apparent unwillingness to hold the Chinese Communist Party to even the minimum standard of global health and transparency hindered the world's ability to blunt the spread of this pandemic, he said.

"It is completely unacceptable that the world's global health organization has become a political puppet of the Chinese government," he alleged, adding that "an independent investigation into the WHO's handling of the COVID-19 response is imperative."

The United States is the largest contributor to the WHO.

"Our valuable tax payer dollars should go towards investments to prevent the spread of disease, not to aid and abet cover-ups that cost lives and isolate portions of the world's population on political grounds, as has been the case with Taiwan," Senator Risch said.

A bipartisan group of nearly two dozen lawmakers announced Tuesday to introduce a resolution to defund the WHO until Ghebreyesus resigns and an international commission investigates the organisation's role in covering up the Chinese Communist Party's failed COVID-19 response.

"The WHO helped the Chinese Communist Party hide the threat of COVID-19 from the world and now more than 10,000 Americans are dead, a number that is expected to rise dramatically in the coming weeks," Congressman Guy Reschenthaler alleged.

"The United States is the largest contributor to WHO. It is not right that Americans' hard-earned tax dollars are being used to propagate China's lies and hide information that could have saved lives. This bill will hold the WHO accountable for their negligence and deceit," he asserted.

The United States' intelligence community has reported that the Chinese government hid the threat of COVID-19 and, as a result, made it difficult for the rest of the world to respond early, appropriately and aggressively, said Congressman Fred Keller.

"For reasons beyond understanding, the WHO acted as a silent partner in this effort instead of protecting the lives of millions across the world, including hundreds of thousands of American citizens. Our hard-earned tax dollars should not go to a global organization more concerned with not offending the Chinese government than providing accurate information and protecting innocent lives," Keller said.

Senator Marco Rubio accused the Chinese Communist Party of using WHO "to mislead the world."

"The organisation's leadership is either complicit or dangerously incompetent. I will work with the Trump Administration to ensure that WHO is independent and has not been compromised by the CCP before we continue our current funding, he added.

According to Johns Hopkins University, there are over 1.43 million confirmed coronavirus cases across the world and over 82,000 people have died due to the disease. The US has nearly 400,000 infections, the highest in the world.

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