Illegal/Undisclosed Assets Held Abroad: Enabling RBI Regulatory Framework For Regularization

Background:

The Central Government, on May 26, 2015, had enacted the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (the "Black Money Act") to deal with undisclosed assets held abroad, acquired from income otherwise liable to be disclosed and chargeable to tax in India, by providing for a separate taxation mechanism.

Enabling RBI regulatory framework for dealing with undisclosed assets held abroad:

Pursuant to the Black Money Act, in respect of undisclosed assets held abroad by a person resident in India for which, inter alia, applicable taxes and penalties have been paid under the Black Money Act, the RBI has now issued (and notified) the Foreign Exchange Management (Regularization of assets held abroad by a person resident in India) Regulations, 2015 (the "FEMA Undisclosed Assets Regularization Regulations, 2015") with a view to provide an enabling regulatory framework for regularization of contraventions occurred under