Switzerland, once known as a hub for hidden wealth, is undergoing a transformation to enhance transparency and combat illicit financial flows. The country is exploring membership in the International Anti-Corruption Coordination Center (IACCC), spearheaded by the United Kingdom, as part of its efforts. The IACCC’s main aim is to prosecute corrupt leaders and recover stolen assets. Switzerland, a prominent offshore wealth management center, has faced criticism for years for allegedly sheltering illicit funds of corrupt officials, businesspersons, and criminals. Significant amounts of Indian black money are also reportedly held in Swiss banks. The UK’s Foreign Minister, David Lammy, proposed Switzerland’s inclusion in the IACCC during meetings with Swiss authorities. Switzerland currently holds observer status but is invited to become a full member. Switzerland has recently taken steps to improve transparency, including strengthening rules on beneficial ownership and enhancing international collaboration in cases of illegal financial activities. The IACCC, established in 2017, is managed by the UK’s National Crime Agency (NCA). It comprises countries such as the United States, Australia, Canada, and New Zealand. The task force has identified and frozen substantial amounts of suspicious assets. India has been working to repatriate black money from abroad and recover assets hidden by fugitives. Indian funds in Swiss banks more than tripled in 2024, reaching 3.5 billion Swiss francs (approximately 37,600 crore rupees). This is the highest amount since 2021. Experts believe that Switzerland’s participation in the IACCC could significantly assist India and other countries in retrieving illicit funds. The Indian government has firmly stated that foreign bank vaults will no longer serve as safe havens for black money, implementing various measures in recent years to tackle the issue.
