"ED A Model Agency": Watchdog FATF Praises India's Asset Recovery System

The Financial Action Task Force (FATF), the global body that monitors efforts against money laundering and terror financing, has praised India's asset recovery framework. In its newly published report "Asset Recovery Guidance and Best Practices", the terror watchdog has described the Enforcement Directorate (ED) as a "model agency" for its efficiency and coordination in tracing and confiscating criminal proceeds.

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.

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.

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. 

The report also recognised India's "value-based confiscation" method -- where equivalent assets are seized in cases where the original property cannot be traced -- as one of the strongest global practices.

According to officials, the acknowledgement reflects India's growing credibility in global financial governance. It underscores the country's progress in tightening anti-money laundering enforcement, ensuring accountability in financial crimes, and boosting cooperation with international partners on asset repatriation.

Experts said the FATF's endorsement not only enhances India's standing in the global regulatory community but also strengthens deterrence against financial offenders who attempt to hide or move illicit assets across borders.