NEW DELHI: The Financial Action Task Force (FATF), the global watchdog overseeing anti–money laundering and counter-terror financing measures, has praised India’s asset recovery framework and described the Enforcement Directorate (ED) as a “model agency” for its efficiency in tracing and confiscating criminal proceeds.
In its latest report, “Asset Recovery Guidance and Best Practices,” FATF has called India among a handful of jurisdictions with strong legal and operational systems for the confiscation and management of crime-linked assets. The report noted that the ED’s asset recovery framework reflects “a mature, well-resourced, and technology-driven approach” that aligns with FATF’s revised global standards, which prioritise asset recovery as a core national policy goal.
In the section on international cooperation, FATF also cited several cases handled by Indian agencies and how efficiently they were tackled. The global body also commended India’s Prevention of Money Laundering Act (PMLA) for enabling swift freezing, attachment, and confiscation of illicit assets even during ongoing trials. FATF further appreciated the country’s inter-agency coordination—particularly among the ED, the Financial Intelligence Unit (FIU-IND), and the Central Bureau of Investigation (CBI)—describing it as a “practical model” that other nations could emulate.
It stated in the report, “India’s 2018 Fugitive Economic Offenders Act empowers India’s Directorate of Enforcement to attach and confiscate proceeds of crime and properties associated with economic offenders in the event of such offenders absconding to foreign jurisdictions. Some jurisdictions may have similar rules related to criminal proceedings in absentia that can also result in confiscation.”
FATF particularly stressed a cross-border drug trafficking network to highlight India’s collaboration with the United States in tackling money laundering and narcotics-linked offences. Acting on a mutual legal assistance request, the ED seized 268.22 bitcoins valued at ₹1.3 billion and attached additional assets worth over USD 1 million, later filing a prosecution complaint seeking confiscation.
With FATF’s endorsement, India’s asset recovery framework is likely to gain further global credibility as the government continues to strengthen enforcement measures and improve cross-border cooperation on financial crimes.
