Switzerland, long seen as a haven for Indians' black money, now considering full membership in IACCC

Switzerland, often accused of being the world’s biggest safe house for black money, is now working to shed its controversial image. In a move aimed at boosting financial transparency and targeting corruption, the country is considering joining the UK-led International Anti-Corruption Coordination Centre (IACCC) as a full member.

For decades, Switzerland’s banking secrecy has been linked with corrupt politicians, businessmen, and criminals using its system to park illicit funds. Many Indians too have stashed black money in Swiss banks, sparking continuous debates in India about recovery of such assets.

Earlier this month, British Foreign Secretary David Lammy met Swiss authorities and proposed their inclusion in the IACCC. At present, Switzerland holds only an observer status but Britain has formally invited it to become a permanent member. According to Reuters, Switzerland in recent years has introduced reforms, including stricter rules on beneficial ownership and stronger cooperation in cross-border money laundering cases.

The IACCC, launched in 2017 and operated by Britain’s National Crime Agency (NCA), is a global task force to combat corruption. Members include the US, Australia, Canada, and New Zealand. Since its inception, the task force has tracked suspected stolen assets worth £1.8 billion and frozen assets worth around £641 million.

For India, Switzerland’s potential membership carries great significance. India has long pursued efforts to bring back black money hidden overseas. In fact, deposits of Indians in Swiss banks rose sharply in 2024, crossing 3.5 billion Swiss francs (about Rs 37,600 crore)—the highest since 2021. Experts believe that if Switzerland becomes an active IACCC member, countries like India will benefit immensely in tracing and recovering illicit wealth.

Over the past decade, India has tightened its stance against black money. The government set up a Special Investigation Team (SIT) in 2014, enacted the Black Money Act in 2015, and introduced the Fugitive Economic Offenders Act in 2018 to seize properties of absconders such as Vijay Mallya and Nirav Modi. India has also acted on revelations like the Panama Papers and Paradise Papers, while simultaneously starting automatic financial information exchange with Switzerland and over 100 countries.

If Switzerland takes the final step towards full IACCC membership, it would mark a major shift for a country once synonymous with secrecy, potentially opening new doors for India and other nations in their fight against illicit financial flows.