India has zero tolerance for black money and corruption, Prime Minister Narendra Modi said on Monday as he sought international cooperation at the G20 summit for the return of illicit money to the country of origin.
The BJP-led government has faced criticism for its failure to deliver on its promise to bring back all the “black money” stashed in foreign banks. A drive to trace undisclosed assets held abroad yielded only Rs 3,770 crore from 638 declarations.
Making an intervention at a G20 session in the Turkish coastal city of Antalya, Modi said the grouping must continue to give priority to combating corruption.
“In India, my government has zero tolerance on corruption and black money. We have enacted a new law to deal with undisclosed assets and income kept abroad. We have also entered into a number of bilateral tax treaties,” he said.
India had also launched a drive against domestic unaccounted money and will “soon bring out a legislation on public procurement”, he added.
Referring to the need for greater international cooperation for the “return of illicit money to the country of origin”, Modi said: “We must address the barriers of excessive banking secrecy, and complex legal and regulatory frameworks.”
All countries should implement the “Common Reporting Standard based on Automatic Exchange of Tax Information” to strengthen global efforts, he said.
Modi, who had sought united efforts to tackle terrorism after the deadly attacks in Paris killed more than 130 people, also called for enhanced cooperation against terrorism financing, including targeted financial sanctions and more effective counter-terror financing tools.
Country-specific reports of the Financial Action Task Force should be shared and the Paris-based body should frame a mechanism to work with deficient countries, he said.
Commending the G20 for its efforts to build a more resilient and open global financial system, he said higher capital requirements should not become a constraint on promoting financial inclusion or the functioning of banks in developing countries.
“Indeed, effective supervision and better use of technology can reduce capital requirements,” he said. “Cyber security is important for the protection of the banking infrastructure.”
He called on the US to ratify the 2010 International Monetary Fund (IMF) quota reforms. “IMF should remain a quota-based institution and not depend on borrowed resources. I hope that the ratification of the reforms of 2010 in the United States would be completed at the earliest,” he said.