Published: Nov 6, 2025, 6:46 AM IST

The Financial Action Task Force (FATF), the global watchdog monitoring money laundering and terror financing, has lauded India’s efforts in asset recovery, particularly highlighting the Enforcement Directorate’s (ED) prompt action in a variety of high-profile cases. The FATF report underscores India’s approach to seizing and restituting proceeds of crime to victims, while implementing legal frameworks to confiscate properties of fugitives.

Global Recognition of ED’s Efficiency

FATF’s 340-page report, titled “Asset Recovery Guidance and Best Practices”, praises India for establishing practical measures to identify, trace, freeze, manage, confiscate, and return assets derived from criminal activities. According to the report, these measures serve as benchmarks for nations worldwide to enhance their asset recovery mechanisms and align with emerging international best practices.

The watchdog specifically recognized the swift interventions by ED in diverse cases—ranging from cryptocurrency frauds, cyber crimes, Ponzi schemes, and domestic and international cases—to recover assets from offenders who have fled the country.

Cases Highlighted

The report cites several ED investigations to illustrate effective asset recovery:

• Rose Valley Ponzi Scam: ED’s probe into the financial fraud enabled restitution of assets to victims, demonstrating coordination in complex financial crime cases.
• Bitcoin Seizure in Drug Trafficking Case: In response to a request from the US, ED successfully recovered cryptocurrency worth ₹130 crore, marking a significant step in cross-border asset recovery.
• Investment Fraud in Andhra Pradesh: Coordinating with the state police, ED restored assets worth ₹6,000 to victims of an alleged financial fraud.
• Maharashtra Cooperative Bank Scam: ED recovered benami properties worth ₹280 crore following allegations of public fund diversion. The restored assets were auctioned, and the proceeds were used to compensate victims. FATF noted that these properties have since been identified as a potential site for constructing a new airport, highlighting the societal benefit of asset recovery in India.

Contribution to Global Best Practices

According to ED, FATF acknowledged that India’s legal framework under the Prevention of Money Laundering Act (PMLA) and the operational experience of the agency informed the report’s guidance on several critical aspects:

• Value-based confiscation: Ensuring that assets seized match the scale of the crime and benefit the victims.
• Provisional attachment of assets: Swiftly securing assets during ongoing investigations to prevent their dissipation.
• Inter-agency cooperation: Coordination among central and state agencies as well as international counterparts for effective recovery of assets.

The report emphasizes that India, through the ED, has substantially contributed to global efforts in developing practical, actionable frameworks for asset recovery. By demonstrating efficiency in returning defrauded wealth to victims and leveraging legal tools against fugitives, India has emerged as a model for proactive enforcement and restitution practices.

ED’s Statement

Commenting on the report, ED stated:

“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 contribution of India and the ED to this global effort has been substantial and widely acknowledged.”

The report signals international recognition of India’s proactive stance in combating financial crimes and ensuring that the proceeds of crime do not benefit offenders, while prioritizing victim restitution.

In conclusion, FATF’s acknowledgment of ED’s performance reinforces India’s commitment to strengthening its financial crime framework and demonstrates how effective asset recovery mechanisms can simultaneously serve law enforcement objectives and public interest.