India has joined a group of nearly 40 nations that have signed a Europe-led clampdown on tax evasion and corruption. This is a commitment to automatically exchange information on beneficial ownership. According to UK’s Treasury Department in London that these 40 countries have committed to the initiative to automatically exchange information on beneficial ownership. The next stage will be for the development of a global standard for this exchange.

Besides India, some of the other countries outside Europe on the list include Afghanistan, Nigeria, Mexico and the UAE. Most European countries except Switzerland are part of this automatic exchange mechanism. Prime Minister Narendra Modi made an election pledge in 2014 to recover billions of dollars sent to tax havens abroad to avoid income tax. The move is seen as a step in that direction. Most European countries except Switzerland are signed up to this automatic exchange mechanism. Also, Switzerland had agreed to work with Indian authorities to tackle tax evaders with Swiss bank accounts.