New Delhi: A latest FATF report has acknowledged India’s legal efforts in recovering public assets defrauded through financial crimes citing an ED money laundering case, where land confiscated by the agency has been identified for constructing an airport that will benefit the society.
The 340-page report titled ‘Asset Recovery Guidance and Best Practices’ has cited the country’s anti-money laundering mechanisms deployed for securing assets worth crores of rupees under various circumstances — domestic, international, expeditious requirements and while dealing with fugitives who have fled the country after perpetrating scams and frauds.
The Paris-headquartered Financial Action Task Force (FATF) sets global standards for combating money laundering and terrorist financing crimes.
“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 Enforcement Directorate (ED) said in a statement.
The report highlights certain money laundering investigations taken up by the ED to secure assets defrauded in financial crimes. However, it did not identify the parties involved.
The report has been accessed by PTI and case studies cited pertain to the restoration of assets to the victims of the alleged Rose Valley Ponzi fraud, a drug trafficking case request received by India from the US where Bitcoins (crypto currency) worth Rs 130 crore were seized by the ED and an instance where the central agency and Andhra Pradesh Police CID coordinated to restore assets worth Rs 6,000 to the victims of an alleged investment fraud.
An ED case cited there, being probed under the provisions of the Prevention of Money Laundering Act (PMLA), pertains to an alleged fraud and diversion of public funds in a Maharashtra-based cooperative bank with the agency restoring benami assets worth Rs 280 crore to compensate the victims after auction of the properties.
Indicating to this case, officials said, the FATF report said the properties confiscated here “have been identified as a site for construction of 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.
“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 ED said.
It said 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 report, as per the FATF, aims for “tangible” improvement of the confiscation of assets process by probe and enforcement agencies across the globe.
