GENEVA: Amid mounting global pressure on Swiss banks to act against clients having illicit wealth, the country’s financial market regulator has found loopholes in the banks’dealing with the foreign political figures. In one of the first-of-its-kind initiative against any hoarding of illicit wealth and money laundering through Swiss banks, the Swiss financial market supervisory authority FINMA has conducted an audit on dealings of all Switzerland-based banks with PEPs (Politically Exposed Persons).
As per the international norms, banks are required to be extra cautious in dealing with PEPs, which includes heads of the state, their family members, government ministers and senior officials of various countries, among others. There have been several unconfirmed reports about politicians from a host of the countries, including India, having allegedly stashed black money in Swiss banks.
Switzerland has been facing pressure from various countries, including India, for making the Swiss bank account details available to them for their probe into suspected tax evasion and black money hoarding.
After months of negotiations, a new treaty was ratified last month between India and Switzerland, pursuant to which the Indian authorities would be able to seek banking details from the European nation even in cases of tax evasion, as against in the cases of only tax frauds earlier.
The FINMA audit was completed last week, pursuant to which it said that enforcement proceedings would begin against four banks, whose provisions for dealings with PEPs were found to be inadequate.
