FATF lauds India’s asset recovery framework, ED’s efficiency

The global watchdog for money laundering and terror financing cited the ED’s swift action in cases ranging from cryptocurrency-related frauds to cybercrimes, ponzi schemes, and dealing with fugitives.

India has developed one of the most effective mechanisms among member countries to identify, attach and repurpose assets derived from economic offences, it stated.

The report highlighted the Indian system’s ability to carry out both conviction-based and non-conviction-based confiscations, along with the use of technology and inter-agency collaboration to speed up investigations.

The watchdog also commended India’s legislative framework under the Prevention of Money Laundering Act (PMLA), which allows swift freezing, attachment and confiscation of criminal proceeds, even while criminal trials are underway.

It appreciated India’s coordination among key institutions such as the Financial Intelligence Unit (FIU-IND) and the Central Bureau of Investigation (CBI), terming it a practical model for other countries to study.

Citing examples of successful cases, FATF referred to several large-scale recoveries where assets worth thousands of crores were attached and returned to victims. These included corporate frauds, cooperative bank scams and investment schemes, where the ED’s actions directly resulted in investor compensation and public welfare projects.

The report refers to the ED’s investigations in the Rose Valley Ponzi fraud and a drug trafficking case request from the US where bitcoins worth Rs 130 crore were seized.

It also referred to a case where the ED and the Andhra Pradesh Police CID had jointly helped in restoring assets worth Rs 6,000 crore to the victims of an alleged investment fraud.