India-US Probe On $150 Million Drug Racket Gets Global Terror Watchdog's Praise

The global anti-terror watchdog, Financial Action Task Force (FATF), has praised a major investigation into $150 million darknet-based international drug smuggling syndicate in India - which was jointly probed by the Enforcement Directorate (ED) and the US. The anti-terror organisation cited the probe as one of the "best practice" cases in the handbook titled 'Handbook on international cooperation against money laundering'.

The FATF referred to the case against two brothers from Uttarakhand's Haldwani, Banmeet Singh and Parvinder Singh, who ran a 'Singh drug trafficking organisation' on the darknet. The FATF, however, did not name the brothers in its handbook and referred to them as Mr P and Mr B.

The two siblings used to sell drugs under the name 'Liston on dark web platforms like Silk Road, Alpha Bay, and Hansa. Investigations revealed that they used to earn in bitcoin and other cryptocurrencies and had more than 8,500 bitcoins, which were worth around $150 million at that time. The drug-selling network was also spread across many states in the US, Canada, England, Ireland, Scotland, Jamaica, and the US Virgin Islands.

According to the US Justice Department, Banmeet Singh used to run more than eight drug distribution cells in different states in the US from 2012 to 2017.

The ED and the US jointly conducted the probe and raids across multiple locations.

While Banmeet Singh was arrested from London in 2019 and extradited to the US in 2023, Parvinder Singh was arrested in 2022. In January 2024, Banmeet Singh confessed to his crime and was later brought back to India.

According to the FATF, the case is an example of how the Indian and US agencies worked together in real-time.

"This case is a strong example of real-time, cross-border co-ordination between the authorities of India and the United States. US officials travelled to India to assist directly in the investigation, including during interviews of the accused, contributing significantly to its progress. The ongoing exchange of intelligence ensured the investigation remained effective and uninterrupted," it said.

The global watchdog for money laundering and terror financing also praised India's online Mutual Legal Assistance (MLA) portal and the new guidelines launched by the Ministry of Home Affairs for international co-operation in criminal matters. "These guidelines provide a clear and structured framework for managing incoming and outgoing MLA requests, marking a significant step toward standardising India's international co-operation efforts," the FATF said.

The FATF handbook, released on Friday, stresses that countries should not rely only on formal routes in mutual cooperation, but should also share information rapidly through informal channels. This will enable immediate action in cases like money laundering and drug smuggling, it said.