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No protection for crime money: Swiss banker

Ashok Dasgupta and Sandeep Dikshit

“If I am a criminal, the last place I will go to open an account is Switzerland”

Mechanism in place for judicial assistance to answer queries
Switzerland limiting cash deposits to Rs. 7 lakh

NEW DELHI: A delegation of Swiss bankers on Wednesday has said that the era when their banks slowed down probes into Bofors accounts is a “thing of the past.”

Here to promote Swiss banking activity and remove “misunderstandings” such as these, Chairman of the Swiss Bankers Association Pierre Mirabaud conceded that for many years India could not get to the Bofors accounts in Switzerland but maintained that the “times you are referring to are over.”

Switzerland today has a very sophisticated legislation to fight every kind of crime. “More than that, we have in place, also with India, a mechanism for judicial assistance to answer queries. I want to state very clearly there is no protection for crime money. This is now a thing of the past and Switzerland has put in place very detailed legislation. Today there is no anonymous account in Switzerland. It is finished. That is one reason why I am here to solve misunderstandings [in this respect],” he said.

Legal obligation

Asked about the general perception in India about people cutting underhand deals having Swiss bank accounts, Mr. Mirabaud said while bankers believe that privacy in financial affairs must be protected, there is no shelter for criminal money.

“If somebody comes and wants to open an account, the bank has the legal obligation to find out the origin of the money and how he made this money. If a bank accepts a customer who has stacked his money from corruption, the bank is liable.”

Switzerland is also discouraging customers from depositing cash and limited such deposits to 25,000 Swiss francs (about Rs. 7 lakh). Even then, the source has to be identified.

“If you say the money was inherited from your my grandmother, I will ask for the will. If you say you got it from selling your land, I will ask you for the sale papers. And I will also ask why you don’t have a cheque. If you don’t give me a really good explanation, we will not accept the money because we can be criminally prosecuted.”

All old accounts too would be subject to the same rules and suspicious transaction must be reported to the authorities. Swiss banks have the obligation to also freeze the money.

“If I am a criminal, the last place I will go to open an account is Switzerland,” said Mr. Mirabaud.

To expand activity

In order to expand its activity in India, the delegation interacted with senior officials of the Reserve Bank of India, Securities and Exchange Board of India, Finance Ministry officials, Mumbai Stock Exchange and the Indian Banking Association.

“The stock market connection is very important. Swiss banks on behalf of their clients have been investing in Indian stock markets for many years. With the rise in volumes India has become a very important financial place. We want to be able to manage money for our clients here in India and maybe for Indian clients,” he said.

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