Modi seeks help to get back illicit money

Prime Minister Narendra Modi on Monday sought greater international cooperation for the return of illicit money to the country of origin.

Addressing G20 leaders, at the session on ‘Enhancing Resilience,’ he wanted them to address the issues of excessive banking secrecy and complex legal and regulatory frameworks. “In India, my government has zero tolerance of corruption and black money...We have enacted a law to deal with undisclosed assets and income kept abroad. We have also entered into a number of bilateral tax treaties.”

Mr. Modi said the G20 must continue according priority to combating corruption and sought the implementation of the Common Reporting Standard based on Automatic Exchange of Tax Information by all countries.

On trade and energy, Mr. Modi said the Doha Development Round should achieve its goals. He wanted all elements of the Bali package to be implemented fully.

Without naming the U.S.-backed Trans Pacific Partnership, he said regional trade agreements should not lead to fragmentation of the global trading system and sought support for a more liberalised multilateral trade regime.

He hoped the ratification of the 2010 reforms of the IMF would be completed in the U.S. at the earliest. “The IMF should remain a quota-based institution and not depend on borrowed resources.”

Mr. Modi underscored the need for greater labour mobility and skill portability across countries for global economic growth to be balanced and sustained. He also sought greater voice for major emerging economies in the global governance structure for energy and said India targeted an additional 175 GW of renewable energy by 2022; a cutback on subsidies for fossil fuel and carbon cess on coal. “By 2030, we have targeted 40 per cent of our energy through non-fossil fuel.”

Higher capital requirements should not hamper financial inclusion or the functioning of the banking sector in developing countries, he said. Effective supervision and better use of technology could help cut capital requirements.