The Economic Times of India has reported that:

The government is planning to scrutinise investments flowing in from tax havens such as Andorra, Aruba, Bahamas, Costa Rica and Dominica where investor details remain confidential due to banking policies.

According to sources in the department of industrial policy and promotion (Dipp), the government is concerned about Indian residents parking money in the island nations to route them back for investments. There are also mounting fears of money being used for terror funding and laundering activities.

Investments in the nations do not get reported as the island countries maintain banking secrecy and do not reveal the nature of investments.

Intelligence agencies have expressed fears that funds from such places were flowing into the stock market through participatory notes issued by foreign institutional investors.

"We need to crack down on such investments. Intelligence authorities and National Security Council (NSC) would assist in tracking such investments," a government source said, adding that most such funds flow into the real estate sector.

'Round tripping', as this process is called, is a common cause of capital flight from developing countries. It is one of the mechanisms that tax havens use that quite deliberately contributes to poverty in the countries by denying their governments that taxation revenues they need.

Every single tax haven government knows this. All are guilty. All contribute to the deaths, poverty and misery that result.

I often wonder how those who hold office in these governments who also professed to have Christian faith, such as Senator Terry le Sueur in Jersey can sleep at night. Their actions are so obviously contradictory to the requirements of the faith that they profess that at best they can be called hypocrites.