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In a historic effort to enhance the fight against money laundering and financial crime, the Financial Action Task Force (FATF) has released its latest publication – “Asset Recovery Guidance and Best Practices” – which establishes a robust global roadmap for identifying, interdicting, managing and returning criminal proceeds. This guidance comes with one of the most significant global reforms of FATF standards on seizure and international cooperation in more than three decades.
The FATF calls on member countries to make asset recovery a policy and operational priority, using the guidance as a benchmark to safeguard financial integrity and ensure better outcomes for victims and communities. The enhanced standards introduce advanced tools such as non-conviction-based confiscation, extended confiscation and unexplained wealth orders, which enable agencies to crack down on illicit wealth even without a prosecution decision.
India’s role
India’s Enforcement Directorate (ED) has been front and center in shaping these reforms. According to the ED statement on the FATF report, Indian officials played an “active role” in the FATF’s technical work and negotiations over the past two years, contributing to the drafting of revised standards and guidance.
Several Indian case studies included in the FATF publication showcase India as a model jurisdiction in asset-tracing operations, value-based seizure and victim restitution. ED says this recognition underlines India’s growing global position in financial crime enforcement.
“The importance of ED’s contribution has been widely acknowledged,” the ED said in a statement, stressing that the inclusion of India’s investigation templates reflects the credibility and operational maturity of the country’s anti-money laundering framework.
Major Indian enforcement actions highlighted by FATF
The FATF document refers to several success stories that demonstrate India’s ability to secure quick financial outcomes for victims and prevent the dissipation of illicit assets:
- Agri Gold restitution of ₹60,000 crore ($690 million) to defrauded investors, high-impact domestic coordination and restitution
- IREO Group’s assets worth ₹1,777 crore ($204 million) seized, strong value-based seizure transferred abroad
- Seizure of ₹1,646 crore ($190 million) in crypto + ₹489 crore in other assets in Bitconnect crypto scam, prompt action on digital assets
- Seizure of 268.22 BTC (₹1,300 crore / $29 million) and assets worth $1.1 million strengthened international cooperation in Banmeet Singh drug trafficking case
- ₹538 crore returned to over 75,000 investors in Rose Valley scheme, victim-centric return mechanism
- Benami assets worth ₹290 crore attached for Penn Urban Co-op Bank fraud, depositor compensation, public-interest asset disposal
- The Fugitive Economic Offenders Act, 2018 has also been seen as a global benchmark for implementing the principle of fugitive entitlement – which empowers authorities to seize the assets of criminals who refuse to face trial.
The new global standard: asset confiscation without conviction
In a landmark change, FATF now mandates that member jurisdictions:
1. Enable recovery of assets without criminal conviction when prosecution is not possible
2. Providing initial unilateral powers to grant agencies
3. Strengthen interim management to preserve the market value of assets
4. Rapidly expand informal cross-border cooperation through channels including ARIN
The FATF guidance also emphasizes transparency, accountability and a restitution-first approach to build public confidence in asset recovery.
The ED statement said India ensured that the guidance addresses the practical challenges faced by developing countries in complex cross-border investigations. India’s push for flexibility and early financial investigation mechanisms has led to a renewed emphasis on FATF’s intelligence-driven international cooperation.