India is one country suffering heavily with unimaginable and enormous black money over last couple of decades. There’s been more than enough negativity about government’s ignorance in dragging out all the stashed cash from politicians, officials, capitalists and businessmen.
Shockingly, according to one of the recent report released by Global Finance Integrity (GFI), an estimated worth of $ 770 billion black economy has entered India between 2005 and 2014. In that decade, more than 13% ($101 billion) of black money move in to India in 2014 and as per report, around $165 billion currency went out of India in those 10 years.
While most of the unaccounted money came from shell companies in the form of foreign financial investment, the total illicit outflow was reported to $165 billion which is 3% of India’s annual trade – i.e. $5500.744 billion.
The report further elaborated on how governments should keep track of public registries of verified beneficial ownership information on all legal entities to assess black money. And also to escape non-performaning assets and frauds, all the banks need to know true beneficiaries of any type of account in their organization, suggested the global study.
