Black money trail: CBDT signs pact with fin intelligence unit

New Delhi, Aug 22 (PTI) Black money stashed abroad by
Indians will now be traced more efficiently as Central Board
of Direct Taxes (CBDT) and the Financial Intelligence Unit
(India) have signed a pact to exchange information on tracking
unaccounted funds, say official sources.
Under the agreement, a nodal officer will be appointed
from each organisation to ensure the exchange of information.
Furthermore, a periodical review of information will make it
more effective in checking the black money flow.
"The MoU (Memorandum of Understanding) also provides
scope for obtaining information on any investigation conducted
by the Indian Revenue Service. It will provide another avenue
to get information about black money of Indians and NRIs
stashed abroad," an official said about the agreement.
The MoU will formalise the exchange of information in
accordance with best international practices, he added.
The MoU was signed on Friday by CBDT Chairman S S N
Moorthy and FIU (IND) Director Arun Goyal.
FIU-IND is an independent body reporting directly to the
Economic Intelligence Council (EIC), headed by the Finance
Minister. It is responsible for receiving and disseminating
information relating to suspect financial transactions.
The CBDT, on the other hand, is the largest consumer of
information reported by financial transacting institutions
like banks and insurance companies.
The MoU between CBDT and FIU (India) assumes significance
against the backdrop of India's becoming a full-fledged member
recently of the Financial Action Task Force (FATF), the
sources said.
FATF is an inter-governmental body, which will enable FIU
(IND) to get information from member countries on money
laundering. This information can then be passed on to the
CBDT, as and when required.
After a five-year wait, India joined as the 34th member
of the FATF. With this, India will have access to information
on suspicious financial transactions abroad.
The issue of black money stashed away by Indians abroad
had become a political issue in the last Lok Sabha (Lower
House of Indian Parliament) elections in 2009. Indian is
currently renegotiating its tax pacts with various countries
like Switzerland to get information on black money parked
there. PTI BSP
MRD