The Enforcement Directorate (ED) has come in for praise by the global terror financing watchdog Financial Action Task Force (FATF) for its diligent and efficient handling of money laundering cases and recovering assets from economic offenders.
The Paris-based watchdog’s latest report, Asset Recovery Guidance and Best Practices, released on Wednesday, showcases India’s success in tracing, freezing, and returning illicit wealth, from massive investment frauds to cryptocurrency-linked scams, under the Prevention of Money Laundering Act and the Fugitive Economic Offenders Act. The 340-page report is titled ‘Asset Recovery Guidance Best Practices.’
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.
One example highlights the case of Agri Gold, where coordinated action between the Enforcement Directorate and Andhra Pradesh State Crime Investigation Department resulted in the attachment and restoration of assets worth `6,000 crore ($ 690 million) to victims of an investment fraud.
In the BitConnect Ponzi Scheme, the watchdog pointed out that investigators seized cryptocurrencies worth 16.46 billion ($190 million) and attached other assets valued at `4.89 billion ($56 million), securing the digital holdings in a cold wallet to preserve value.
Another case related to the IREO group notes the attachment of immovable properties worth `1,777 crore ($204 million), equivalent to proceeds of crime transferred outside India, under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA), demonstrating India’s use of value-based confiscation.
The guidance also references India’s Fugitive Economic Offenders Act, 2018, as a notable illustration of the doctrine of fugitive disentitlement, which enables confiscation of property belonging to offenders evading judicial processes.
Under the section on expeditious measures, the guidance presents the case of the BitConnect Ponzi Scheme, where, based on intelligence regarding web wallets and digital devices containing cryptocurrencies, ED took swift action by seizing cryptocurrencies worth approximately `1,646 crore ($190 million) during search and seizure operations.
The seized virtual assets were secured in a cold wallet held by the Directorate, and additional movable and immovable properties worth `4.89 crore ($56 million) were attached in connection with the scam.
As an example of international cooperation, the guidance highlighted the case of Banmeet Singh & Others, where India received a mutual legal assistance request from the US in relation to two Indian individuals under investigation for drug trafficking and money laundering. Indian cases like Rose Valley and Pen Urban Cooperative Bank were also held up as examples of victim-focused restitution.
Acting on this request, ED conducted search operations, seizing 268.22 bitcoins valued at approximately `130 crore ($29 million) and attaching immovable properties worth $1.1 million. A prosecution complaint was subsequently filed for the confiscation of the seized and attached assets.
The guidance also includes examples under restitution and victim compensation. In one instance, the case of the Rose Valley Scheme is highlighted, where they raised public funds through secured debentures and diverted the money into shell companies.
ED provisionally attached assets and coordinated with the Asset Disposal Committee constituted by the High Court to manage restitution. The court authorised the release of attached properties worth `538 crore ($62.8 million) to reimburse more than 75,000 investors. Victims were able to submit claims directly through an official website established by the committee, avoiding legal expenses. The guidance also references India’s Fugitive Economic Offenders Act, 2018, as a notable illustration of the doctrine of fugitive disentitlement, which enables confiscation of property belonging to offenders evading judicial processes.
FATF noted that India has developed one of the most effective mechanisms among member countries to “identify, attach, and repurpose” assets derived from economic offences. 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. In the section on international cooperation, FATF also cited several cases handled by Indian agencies and how efficiently they were tackled.
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 ongoing. It also 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.
The FATF is an intergovernmental body that sets global standards and formulates policies to combat money laundering, terrorist financing, and the funding of weapons of mass destruction.
