MENACE PERSISTS

Source: The Hitavada      Date: 30 Jun 2018 12:12:38


THE menace of black money being laundered and stashed in safe havens abroad appears to have made its reappearance, if the report of the Swiss National Bank (SNB) is to be believed. According to the Swiss  central banking authority, there has been a spurt of over 50 pc in 2017 in Indians’ money parked in Swiss banks, halting the declining trend of the last three years.

While the Indian Government has put in place several measures to check black money generation and money-laundering and signed agreements with several governments for information sharing on Indian money parked in their banking systems, there still appears to be some loophole that veterans in the business of money-laundering are fully exploiting.

This clearly shows that generation of black money, money-laundering and parking ill-gotten money in safe havens abroad are far from dead. And it will be naive to believe that it will wither away so easily. But it is clear that the Government has to redouble its efforts to keep the menace under control so that it does not harm the country’s economy in any significant manner. 

 

PAKISTAN NAILED

THE four-month window that Islamabad was presented by Financial Action Task Force (FATF), a watchdog in matters of terror financing, in February to escape its dreaded ‘grey list’ was nothing but delaying the inevitable for Pakistan. The rogue State has been rightly nailed for its blatant support to terror groups operating from the Pakistani soil with established proofs of political and military backing.

This action will have serious consequences for Pakistan which now risks choking of international funds and downgrading by multilateral lenders like the IMF, World Bank and ADB. It will further slide Pakistan towards a grave economic crisis. Pakistan’s 26-point action plan and diplomatic manoeuvers fell flat in the FATF plenary on expected lines.

It is another reminder to Islamabad of the harsh truth that the Terror Frankenstein it produced against India is gnawing at its own creators. The development is another victory for the silent and suave diplomacy by New Delhi which bought Beijing’s silence and Riyadh’s support to the resolution against their ‘friend.