As a disagreement continues on alleged black money stashed by Indians in Swiss banks, India now accounts for almost 42 % of overall gold and silver leaving Switzerland coasts — biggest for any single nation.
Based on the most recent official data in the Swiss government, its whole export of gold, silver and coins in the month of June 2014 stood at 3.9 billion Swiss franc (over Rs 26,000 crore), out of which India alone accounted for 1.63 billion Swiss franc (about Rs 11,000 crore).
‘Layering’ is an integral period in money laundering and involves transferring illegal funds around the monetary system through the paper path to be complicated by a complex series of bargains.
This layering typically happens between the first period — positioning of black money in the financial system either in cash vaults, or through a number of cash or sham financial transactions — and before the final ‘integration’ period when money is put back into the monetary system through various transactions for the advantage of its final receiver.
The newest data comes at a period when India has stepped up pressure on Switzerland to discuss advice by Indians on stashing of money that is black.
Switzerland has given to collaborate in the fight against black cash in India and has also invited an Indian delegation to visit Berne for discussions in this respect.
At precisely the same time, the banks have got endeavors signed by their clients, where the customer agrees to consider responsibility for any possible regulatory or administrative compliance with global standards.
Of this, dispatches to India have reached nearly Rs 50,000 crore (7.3 billion Swiss franc).
However, a brand new strategy of ‘layering’ through gold and diamond trade has come to light at Swiss banks to thwart any effort for identification of actual beneficiary proprietors of funds entrusted with the, banking and government resources have mentioned.
An increasing suspicion is a portion of gold and diamond trade is being used to route funds from banks to other destinations and India.
Under pressure that was international, Switzerland agreed earlier this season to provide state-wise breakdown of its gold commerce.
An evaluation of the Swiss government’s bullion export data reveals that India accounted for 41.91 percent of total exports during June, up from 33 % in May and at just about 14 per cent at the begin of this year. The gold exports to India stood at less than one-billion Swiss francs, but has been persistently increasing since then.
By comparison, Switzerland’s overall bullion exports had increased in February to over 8 billion Swiss francs, from about 7 billion Swiss francs, but fell for three consecutive months then till 3.7 billion Swiss francs in May.
In June, Turkey arrived a distant second after India with less than USD 500-million Swiss franc of bullion export. Other major destinations were major markets like USA, Britain, China, France and Germany, as also UAE, Singapore and Hong Kong.