In A First, Probe Agency ED Gets Interpol To Issue Purple Notice

The Enforcement Directorate (ED) has achieved a milestone by getting a Purple Notice published through Interpol on August 21, exposing a sophisticated case of trade-based money laundering.

During its probe, the ED unearthed an organised network of domestic and foreign shell entities engaged in laundering funds under the guise of international trade. Investigators found that conspirators exploited trade and banking systems by under-invoicing imports, using sham duty-free imports such as semiconductors, forging compliance documents, and routing circular re-exports through third countries.

This created a misleading picture of legitimate commerce, effectively masking large-scale illicit fund flows.

The operation bore hawala-like traits but was conducted through formal banking systems and forged documentation to avoid detection. By publishing this Purple Notice, the ED has shared these findings with law enforcement agencies across Interpol's 196 member countries, warning them of the new laundering techniques.

A Purple Notice is one of eight types of alerts issued by Interpol, specifically designed to provide information on the modus operandi, objects, devices, and concealment methods used by criminals.

Officials said the development underscores India's proactive stance in the global fight against financial crime. Recognising that money laundering often involves cross-border dimensions, the ED has been actively building informal cooperation networks to trace assets and exchange intelligence swiftly with global counterparts.

The agency is also engaging with platforms like the Globe Network and the Asset Recovery Interagency Network - Asia Pacific (ARIN-AP) to influence global policy and prevent safe havens for illicit wealth.

The issuance of this Purple Notice not only strengthens international awareness of trade-based money laundering risks but also highlights India's leadership role in shaping coordinated global responses to money laundering.