Priyanka Tiwari
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Suspense crime, Digital Desk : Funds held by Indian individuals and firms in Swiss banks have fallen by nearly 18% over the last ten years, marking a significant shift away from Switzerland's famed banking secrecy amid a global crackdown on tax evasion.
According to the latest annual data from the Swiss National Bank (SNB), total deposits by Indian clients stood at 2.49 billion Swiss Francs (approximately Rs 23,733 crore) at the end of 2023. This is a sharp drop from the 3.03 billion Swiss Francs held in 2014.
This long-term decline reflects a new era of global financial transparency. Under pressure from international bodies like the OECD and G20, Switzerland has dismantled its long-standing secrecy laws. A key factor is the "Automatic Exchange of Information" (AEOI) agreement, under which Switzerland has been sharing detailed financial account information with Indian authorities since 2019, making it much harder to hide undeclared assets.
However, the data for 2023 showed a surprising short-term rebound, with Indian deposits increasing by 12.5% compared to the previous year. This recent uptick was driven by a rise in funds held through fiduciaries or wealth managers and an increase in holdings of bonds and other securities.
It is crucial to note that the SNB data is not an indicator of illicit "black money." The figures include all types of funds held by Indian nationals and companies in Switzerland, such as legitimate business deposits from Indian firms, individual savings from Indians residing in Switzerland, and other official financial holdings.
Nonetheless, the decade-long trend clearly signals that the allure of Swiss banks as a secret haven for wealth is fading fast, as increased scrutiny and automatic data sharing have changed the landscape of global finance.
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