Indian Prime Minister Narendra Modi Sunday made a strong pitch for repatriation of black money by urging the G20 nations on the need for close coordination to address the challenge of black money and linked it to security issues such as terrorism, a major global concern.
Addressing a G20 session titled "Delivering Global Economic Resilience", the prime minister also voiced support for a new global automatic exchange of information, saying it would be instrumental in getting information of the unaccounted money stashed abroad and help bring it back.
Making an intervention on issues of tax evasion on the second and final day at the G20 Summit, the prime minister "reiterated his call for close policy coordination among major economies, saying this is important not just for also addressing the challenge of black money, but also for security issues like terrorism, drug trafficking, arms smuggling etc", according to an official statement.
"He said although all countries have their domestic priorities, coordinated decisions would 'help us all' in the long run. He said the resilience of the global financial system will also depend on cyber security."
Modi "expressed India's support for a new global standard on automatic exchange of information, which would be instrumental in getting information about unaccounted money hoarded abroad and enable its eventual repatriation", the statement said.
He said he supported all initiatives to facilitate exchange of information and mutual assistance in tax policy and administration.
"Noting that increased mobility of capital and technology have created new opportunities for avoiding tax and profit shifting, the prime minister said he urged every jurisdiction, especially tax havens, to provide information for tax purposes in accordance with treaty obligations," it said.
"Hope Base Erosion and Profit Shifting (BEPS) system would fully address concerns of developing and developed economies," according to tweets by the ministry of external affairs.
"Resilience of our financial system will also depend on cyber security," the prime minister added, according to another tweet.
The G20 governments are expected to back a plan to stop terrorist groups such as Islamic State getting finance by introducing tougher standards that would reveal the identities of individuals and/or companies channelling illegal funds to them.
On Saturday, Modi had first raised the subject on the G20 platform by urging BRICS nations during an informal meeting on the need for close coordination between countries to repatriate unaccounted wealth.
Modi, in his closed door address to the leaders of Brazil, Russia, China and South Africa here Saturday had said that unaccounted money abroad posed both economic and security challenges and also proposed setting up of a digital hub for sharing of information.
The prime minister in his departure statement Nov 11 before leaving on his tour to Myanmar, Australia and Fiji had said that he will highlight the importance of global cooperation against black money at the G20, which kicked off here Saturday.
