Indian, Bangladeshi Funds in Swiss Banks Soar in 2024

In 2024, Indian deposits in Swiss banks tripled to approximately $3.78 billion, reaching their highest level since 2021, while Bangladeshi-linked funds soared more than 33-fold to 589.5 million Swiss francs, marking a three-year high. The surge in Indian holdings was mainly due to institutional rather than individual accounts, and Swiss officials stressed these assets are not automatically illicit. Bangladesh’s increase, also driven by institutional transfers, has raised concerns about capital flight and regulatory gaps amid political instability. While Switzerland continues automatic exchange of information (AEOI) with India to combat tax evasion, Bangladesh has yet to join such agreements, limiting oversight of its citizens' deposits. Experts highlight that despite greater transparency in Swiss banking, cross-border financial flows remain difficult to regulate and may have opaque origins. The overall rise in offshore deposits underlines ongoing challenges for both countries in monitoring and controlling overseas funds.