FATF report on asset recovery lauds ED’s swift action in cases
The global watchdog for money laundering and terror financing particularly cited the Enforcement Directorate’s (ED) “swift” action in various cases in its latest report on asset recovery
New Delhi: 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, besides implementing a law on confiscating properties of the fugitives.
The global watchdog for money laundering and terror financing particularly cited the Enforcement Directorate’s (ED) “swift” action in various cases, ranging from crypto-currency related frauds to cyber crimes and ponzi schemes and in different circumstances – domestic, international and while dealing with those fugitives who have fled the country.
Citing the 340-page report on “Asset Recovery Guidance and Best Practices” of Paris headquartered FATF, 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 guidance serves as a benchmark for countries to enhance their national frameworks and align with emerging best practices.”
The report highlights certain money laundering investigations taken up by ED 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 received by India from the US where Bitcoins (crypto currency) worth ₹130 crore were seized by ED and an instance where the federal agency and Andhra Pradesh Police CID coordinated to restore assets worth ₹6,000 to the victims of an alleged investment fraud.
A case cited in the report pertains to an alleged fraud and diversion of public funds in a Maharashtra-based cooperative bank with the agency restoring benami assets worth ₹280 crore to compensate the victims after auction of the properties.
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 report added.
“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,” ED said, quoting the report.
