Black money of Indians in Swiss banks rose 50% to over Rs 7000 cr in 2017

Agencies
June 28, 2018

Zurich, Jun 28: Money parked by Indians in Swiss banks rose over 50% to Swiss Francs (CHF) 1.01 billion (₹7,000 crore) in 2017, reversing a three-year downward trend amid India’s clampdown on suspected black money stashed there.

In comparison, the total funds held by all foreign clients of Swiss banks rose about 3% to CHF1.46 trillion or about ₹100 lakh crore in 2017, according to the official annual data released on June 28 by Swiss National Bank (SNB), the central banking authority of the Alpine nation.

The surge in Indian money held with Swiss banks comes as a surprise given India’s continuing clampdown on suspected black money stashed abroad, including in banks of Switzerland that used to be known for their famed secrecy walls for years.

The Indian money in Swiss banks had fallen by 45% in 2016, marking their biggest ever yearly plunge, to CHF676 million (about ₹4,500 crore) — the lowest ever since the European nation began making the data public in 1987.

According to the SNB data, the total funds held by Indians directly with Swiss banks rose to CHF999 million Swiss franc (₹6,891 crore) in 2017, while the same held through fiduciaries or wealth managers increased to CHF16.2 million (₹112 crore). These figures stood at CHF664.8 million and CHF11 million, respectively, at the end of 2016.

As per the latest data, the Indian money in Swiss banks included CHF464 million (₹3,200 crore) in the form of customer deposits, CHF152 million (₹1,050 crore) through other banks and CHF383 million (₹2,640 crore) as ‘other liabilities’ such as securities at the end of 2017.

The funds under all three heads have risen sharply, as against a huge plunge across all categories in the previous year, the SNB data showed.

The funds held through fiduciaries alone used to be in billions till 2007 but began falling after that amid fears of regulatory crackdown.

The total funds held by Indians with Swiss banks stood at a record high of CHF6.5 billion (₹23,000 crore) at 2006-end, but came down to nearly one-tenth of that level in about a decade.

Since those record levels, this is only the third time when there has been a rise in Indians’ money in Swiss banks — in 2011 (12%), 2013 (43%) and now in 2017 by 50.2% — the maximum increase since 56% way back in 2004.

The latest data from Zurich-based SNB comes months after a new framework having been put in place for automatic exchange of information between Switzerland and India to help check the black money menace.

While Switzerland has already begun sharing foreign client details on evidence of wrongdoing provided by India and some other countries, it has agreed to further expand its cooperation on India’s fight against black money with a new pact for automatic information exchange.

There were several rounds of discussions between Indian and Swiss government officials on the new framework and also for expediting the pending information requests about suspected illicit accounts of Indians in Swiss banks.

The funds, described by SNB as ‘liabilities’ of Swiss banks or ‘amounts due to’ their clients, are the official figures disclosed by the Swiss authorities and do not indicate to the quantum of the much-debated alleged black money held by Indians there.

SNB’s official figures also do not include the money that Indians, NRIs or others might have in Swiss banks in the names of entities from different countries.

Amid a decline seen in Indian money over the previous three years, there was a view that Indians who had allegedly parked their illicit money in Swiss banks in the past may have shifted the funds to other locations after a global crackdown began on the mighty banking secrecy practices in Switzerland.

Swiss banks have earlier said Indians have “few deposits” in Swiss banks compared to other global financial hubs like Singapore and Hong Kong amid stepped-up efforts to check the black money menace.

On directions of the Supreme Court, India had constituted a Special Investigation Team (SIT) to probe cases of alleged black money of Indians, including funds stashed abroad in places like Switzerland.

A number of strategies were deployed by the government to combat the stash-funds menace, in both overseas and domestic domain, which included enactment of a new law, amendments in the Anti-Money Laundering Act and compliance windows for people to declare their hidden assets.

The Income Tax department had detected suspected black money running into thousands of crores of rupees post investigations on global leaks about Indians stashing funds abroad and has launched prosecution against hundreds of them, including those with accounts in the Geneva branch of HSBC.

The issue of black money has always been a matter of big debate in India and Switzerland has been long perceived as one of the safest havens for such funds.

In 2015, the money held by Indians in Swiss banks had fallen by nearly one-third to CHF1,217.6 million (over ₹8,000 crore). Prior to that, these funds fell by 10% to CHF1.8 billion in 2014, after a rise of 43% in 2013 to CHF 2.03 billion.

The total assets of Swiss banks in India, however, fell by about 18% in 2017 to CHF3.2 billion in second consecutive year of decline. This does not include any tangible assets like real estate and properties.

The amount owed by Indian clients to Swiss banks fell by 48% in 2017 to CHF210 million.

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Agencies
May 31,2020

Minneapolis, May 31: The full Minnesota National Guard was activated for the first time since World War Two after four nights of civil unrest that has spread to other U.S. cities following the death of George Floyd, a black man shown on video gasping for breath as a white Minneapolis policeman knelt on his neck.

Minnesota Governor Tim Walz said the deployment was necessary because outside agitators were using protests over Monday’s death of George Floyd to sow chaos and that he expected Saturday night’s demonstrations to be the fiercest so far.

From Minneapolis to several other major cities including New York, Atlanta and Washington, protesters clashed with police late on Friday in a rising tide of anger over the treatment of minorities by law enforcement.

“We are under assault,” Walz, a first-term governor elected from Minnesota’s Democratic-Farmer-Labor Party, told a briefing on Saturday. “Order needs to be restored. ... We will use our full strength of goodness and righteousness to make sure this ends.”

He said he believed a “tightly controlled” group of outsiders, including white supremacists and drug cartel members, were instigating some of the violence in Minnesota’s largest city, but he did not give specific evidence of this when asked by reporters.

As many as 80% of those arrested were from outside the state, Walz said. But detention records show just eight non-Minnesota residents have been booked into the Hennepin County Jail since Tuesday, and it was unclear whether all of them were arrested in connection with the Minneapolis unrest.

The Republican Trump administration suggested civil disturbances were being orchestrated from the political left.

“In many places, it appears the violence is planned, organized and driven by anarchic and left extremist groups - far-left extremist groups ... many of whom travel from outside the state to promote violence,” U.S. Attorney William Barr said in a statement.

In an extraordinary move, the Pentagon said it put military units on a four-hour alert to be ready if requested by Walz to help keep the peace.

Activists staged another round of protests on Saturday in at least a dozen major U.S. cities coast to coast, including Seattle, Los Angeles, Chicago, Cleveland, Dallas, Atlanta, New York and Atlanta.

In the nation’s capital, hundreds of demonstrators assembled near the Justice Department headquarters, then marched toward the U.S. Capitol, chanting, “Black lives matter,” and “I can’t breathe,” a rallying cry echoing Floyd’s dying words.

Many later ended up near the White House, where they faced off with shield-carrying police, some mounted on horseback.

The streets of Minneapolis were largely quiet during daylight on Saturday, though several National Guard armoured personnel carriers were seen rolling through town.

On Friday, in defiance of a newly imposed curfew, Minneapolis protesters took to the streets for a fourth night - albeit in smaller numbers than before - despite the announcement hours earlier of murder charges filed against Derek Chauvin, the policeman seen in video footage kneeling on Floyd’s neck.

Three other officers fired from the police department with Chauvin on Tuesday are also under criminal investigation in the case, prosecutors said.

The video of Floyd’s arrest - captured by an onlooker’s cellphone as he repeatedly groaned, “please, I can’t breathe” before becoming motionless - triggered an outpouring of rage that civil rights activists said has long simmered in Minneapolis and cities across the country over persistent racial bias in the U.S. criminal justice system.

‘PAINS ME SO MUCH’

The mood was sombre on Saturday in the Minneapolis neighbourhood of Lyndale, where dozens of people surveyed the damage while sweeping up broken glass and debris.

“It pains me so much,” said Luke Kallstrom, 27, a financial analyst, standing in the threshold of a fire-gutted post office. “This does not honour the man who was wrongfully taken away from us.”

Some of Friday’s most chaotic scenes were in the New York City borough of Brooklyn, where police armed with batons and pepper spray made more than 200 arrests in sometimes violent clashes. Several officers were injured, police said.

In Washington, President Donald Trump said on Saturday that if protesters who gathered the night before in Lafayette Square, across from the White House, had breached the fence, “they would have been greeted with the most vicious dogs, and most ominous weapons, I have ever seen.”

CHAOS IN ATLANTA

In Atlanta, Bernice King, the youngest daughter of slain civil rights icon Martin Luther King Jr., urged people to go home on Friday night after more than 1,000 protesters marched to the state capitol and blocked traffic on an interstate highway.

The demonstration turned violent at points. Fires burned near the CNN Center, the network’s headquarters, and windows were smashed at its lobby. Several vehicles were torched, including at least one police car.

Rapper Killer Mike, in an impassioned speech flanked by the city’s mayor and police chief, also implored angry residents to stay indoors and to mobilize to win at the ballot box.

“But it is not time to burn down your own home.”

Floyd, a Houston native who had worked security for nightclubs, was arrested on suspicion of trying to pass counterfeit money at a store to buy cigarettes on Monday evening. Police said he was unarmed. An employee who called for help had told a police dispatcher that the suspect appeared to be intoxicated.

In a striking coincidence, Floyd and Chauvin had both worked security at the same Latin nightclub in Minneapolis, though it was unlikely they ever interacted, former owner Maya Santamaria, who sold the El Nuevo Rodeo club in January, told Reuters.

Santamaria said Floyd worked inside the club on certain nights, supporting other staff with security. She said Chauvin, who worked outside the club as an off-duty cop for 16 years, had a reputation for roughing up customers, but she considered him responsible and a friend.

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News Network
May 8,2020

Mangaluru, May 8: Migrant workers, stranded in Karnataka due to lockdown, staged a protest on Friday at the Central Railway Station here, demanding to be sent back to their respective native places.

The workers demanded the state government to take measures and send them back to their homes.

Maintaining social distancing and covering their faces with masks, the workers were holding placards which read -- "We want to go home Jharkhand, We want justice and we want to go home."

They appealed to the state government to arrange trains and buses to ferry them to their native places and threatened to walk home if denied transport.

Several protests have erupted in different parts of the country, such as Andhra Pradesh and Kerala, as stranded labourers took to the roads demanding to be sent back home.

The Ministry of Home Affairs on May 1 had issued an order to extend the ongoing lockdown by two more weeks from May 4 with some relaxations.

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News Network
June 12,2020

Bengaluru, Jun 12: Karnataka Medical Education Minister K Sudhakar on Friday said experts have indicated a surge in coronavirus cases in the state after August 15 and the government was taking all precautionary measures in that direction. Speaking to reporters in Ballari, Sudhakar said, "About 97 percent of over 3,000 active cases in the state are asymptomatic.

Experts after studying the developments in other countries and states have said that there will be a surge in infections after August 15."

He said the government was taking all precautionary measures in that direction.

 As of June 11 evening, cumulatively 6,245 COVID-19 positive cases have been confirmed in the state, which includes 72 deaths and 2,976 discharges, the health department's bulletin said.

It said, out of 3,195 active cases, 3,185 patients are in isolation at designated hospitals and are stable, while 10 are in ICU.

Meanwhile, in a tweet pointing out that nearly 60 per cent of the COVID cases in the country are from 10 cities, Sudhakar said, despite being the fourth most populous city in the country Bengaluru has been successful in containing its spread.

"Nearly 60% of total COVID-19 cases in India are found in 10 cities. Despite being 4th most populous, Bengaluru has been successful in containing spread of virus.

I urge people to keep up the fight, continue vigil & together with #CoronaWarriors we can defeat the virus," Sudhakar tweeted.

Bengaluru that does not figure in the list of 10 cities shared by the Minister has reported 581 coronavirus cases till last evening, out of which 258 are active.

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