Money laundering to become difficult in next 1-2 years, Indian Finance Minister says

According to Arun Jaitley, Minister for Finance, Corporate Affairs, Information, and Broadcasting in the Government of India, tax evasion and money laundering will become extremely difficult in the future. He warned lawbreakers that real-time global automatic exchange of information system will come into effect.

Indian finance minister said: “I am quite certain that the activity is going on in that direction and the next 1-2 years are also going to bring significant results because with almost real-time exchange of information, lives are going to become extremely difficult as far as lawbreakers in that regard are concerned,” the minister said in his inaugural speech at international conference on ‘Networking the Networks’.

Jaitley noted that tax evasion and stashing away illegal money anywhere in the world is becoming increasingly difficult after a G20 initiative that is being taken up by various international institutions.

The initiative, firmed at the Australia summit of G20 last November, is a new global arrangement under which countries will begin automatic exchange of tax information in stages beginning April 1, 2017. India, one of the early adopters, will begin sharing from the first date. Also, the OECD has recently announced the rules for the Base Erosion and Profit Shifting (BEPS) framework, which seeks to ensure that trans-nationals pay tax at least at some place.

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