Spooked by the new black money law, a number of Swiss and other European banks have begun asking Indian clients to disclose their accounts to the tax
authorities back home as they fear being accused of ‘abetting’ the hoarding of untaxed assets.
These banks, which include those headquartered in Switzerland and London, are asking their customers from India, including those having turned NRIs, to avail the ongoing ‘one-time compliance’ window provided by the Indian tax authorities for disclosure of undeclared foreign assets.
Besides, these banks are also asking their clients to give fresh undertakings to state that they are ‘in compliance’ with all the laws in their home countries, executives at some of these large financial institutions said.