Black money: India offers cash reward to HSBC whistleblower

India has offered a "cash reward" to a former HSBC bank employee-turned-whistleblower in exchange for any fresh information about its citizens holding illegal accounts in various tax haven countries, including in Swiss banks, as it looks to combat black money and unearth funds stashed away abroad.

Sources said that the government is "still awaiting" a response to the offer it has made to former HSBC employee Herve Falciani after he hinted that he possessed additional information on the lines of the list of 628 Indian entities holding accounts with the bank in Switzerland's Geneva.

"Government has offered a cash reward deal to Falciani as part of its request seeking cooperation for obtaining information on black money cases which the whistleblower said he possessed.

"This is one aspect of the offer extended, as it also includes exchange of information as part of efforts of both stakeholders to crack down on black money and illicit funds across the globe," sources said, adding that "the money offered to him is as per government rules".

However, they did not disclose the exact amount offered.

They said that the I-T department has sought from the whistleblower, who has interacted with media in the past, anything and everything he could share vis-a-vis Indian account holders and their associates in the information that he claims to have kept with himself.

As per rules, up to 30 percent of the tax amount realised could be offered to whistleblowers who provide specific information on illegal funds.

The Finance Ministry had in February said that the Income Tax department was already in touch with Falciani, "who apparently brought out the names of persons holding undisclosed bank accounts in HSBC, Switzerland."