FATF hails India's asset recovery model, cites ED as global benchmark

FATF highlights India's Enforcement Directorate for its effective coordination, citing ED's cases as examples of global best practice in tracing and seizing illicit assets

The Financial Action Task Force (FATF) has praised India's asset recovery framework, describing the Enforcement Directorate (ED) as a “model agency” for its efficiency and coordination in tracing and confiscating criminal proceeds.

 

In its report, “Asset Recovery Guidance and Best Practices”, the global money laundering and terrorist financing watchdog, shared multiple examples from cases investigated by the ED, citing them as models of effective asset recovery practice and inter-agency coordination.

 

Drawing from India’s legal framework under the Prevention of Money Laundering Act, 2002, and its operational experience, the report stated that ED’s inputs helped shape key aspects of the guidance related to value-based confiscation, provisional attachment, and inter-agency cooperation. The Fugitive Economic Offenders Act, 2018 of India is also highlighted in the report as a very good example of the legal doctrine of fugitive disentitlement.

 

In a statement, ED said, “This recognition reflects the increasing international standing of India and ED in the global discourse on asset recovery and financial crime enforcement.”

 

 “The FATF guidance specifically refers to many Indian case examples from ED, including a case where ED and a State Crime Investigation Department coordinated to attach assets in a large-scale investment fraud,” it said.

 

The coordinated effort resulted in the restoration of assets worth ~60 billion (USD 690 million) to victims, which FATF has highlighted as a model for domestic cooperation and victim restitution. Another case cited in the document involves the attachment of immovable properties valued at ~17.77 billion (USD 204 million) equivalents to proceeds of crime transferred abroad, showcasing India’s effective application of value-based confiscation and its robust legislative framework.

 

India’s engagement in the FATF discussions also ensured that the guidance reflects the practical realities faced by developing and emerging economies in asset recovery, particularly in cross-border cases involving complex financial structures. India’s advocacy for flexible and responsive mechanisms for asset-tracing and cooperation has contributed to FATF’s renewed emphasis on informality, mutual assistance, and early financial investigation. The ED’s consistent participation in the FATF working groups has been instrumental in aligning the revised recommendations with operational realities and enforcement needs.

 

“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 guidance is expected to serve as a valuable resource for countries seeking to strengthen their asset recovery systems, and India’s leadership through the Directorate of Enforcement will continue to play a pivotal role in promoting its implementation and further advancement of global asset recovery cooperation,” said the statement.