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Global terror financing watchdog FATF lauds ED’s efforts in seizing assets in financial crimes
The global watchdog for money laundering and terror financing cited the Enforcement Directorate (ED) “swift” action in multiple cases
The Financial Action Task Force (FATF) on Wednesday released a report on asset recovery in criminal cases, lauding India’s efforts to seize and restitute the proceeds of crime to the victims, and implementing a law on confiscating properties of the fugitives.
The global watchdog for money laundering and terror financing cited the Enforcement Directorate (ED) swift action in cases, ranging from cryptocurrency-related frauds to cyber crimes, ponzi schemes, and dealing with fugitives.
Quoting the 340-page report on “Asset Recovery Guidance and Best Practices” of Paris headquartered FATF, the ED said in a statement on Wednesday, “The report outlines practical measures for policy makers and practitioners to identify, trace, freeze, manage, confiscate and return assets derived from criminal activity…”
The ED said the guidance serves as a benchmark for countries to enhance their national frameworks and align with emerging best practices. The report highlights ED’s money laundering investigations to secure assets defrauded in financial crimes.
The report, seen by HT, mentions ED’s probe into the Rose Valley Ponzi fraud, a drug trafficking case request from the US, where Bitcoins (cryptocurrency) worth ₹130 crore were seized, etc. It cites an instance where the central agency and Andhra Pradesh Police CID coordinated to restore assets worth ₹6,000 to the victims of an alleged investment fraud.
Another case cited in the report pertains to an alleged fraud and diversion of public funds in a Maharashtra-based cooperative bank. The agency restored benami assets worth ₹280 crore to compensate the victims after the auction of the properties.
The FATF said the properties confiscated here “have been identified as a site for construction of a new airport, to build infrastructure in India for the benefit of society at large”. “The contribution of India and the ED to this global effort has been substantial and widely acknowledged”.
The ED quoted the report and said: “Drawing from India’s legal framework under the PMLA and its operational experience, ED’s inputs helped shape key aspects of the guidance related to value-based confiscation, provisional attachment, and inter-agency cooperation.”
The FATF also referenced India’s Fugitive Economic Offenders (FEO) Act, 2018, as a notable illustration of the doctrine of fugitive disentitlement, which enables confiscation of property belonging to offenders evading judicial processes.
Brought in by the government in 2018 to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts, the FEO Act empowers authorities for non-conviction-based attachment and confiscation of proceeds of crime and assets, where the amount involved is above ₹100 crore.
As an example of international cooperation, the FATF highlighted the case of an accused, Banmeet Singh, and others, where India received a mutual legal assistance request from the US in relation to two Indian individuals under investigation for drug trafficking and money laundering. Acting on this request, ED conducted search operations, seizing 268.22 bitcoins valued at approximately ₹1.3 billion (USD 29 million) and attaching immovable properties worth USD 1.1 million, according to the report.
The FATF guidance also cites Indian practices related to coordination among law enforcement, financial intelligence, and tax authorities, the use of corresponding value attachment, and the application of technology and financial data analytics in asset-tracing and interim management.
It said the inclusion of Indian examples and references to ED’s practices underlines the credibility of India’s enforcement mechanisms and the value of its experience in shaping future global standards.
The report, as per the FATF, aims for tangible improvement in the confiscation of assets by enforcement agencies across the globe.
