Context:

The Financial Action Task Force (FATF), the global watchdog for money laundering and terrorist financing, has commended India’s asset recovery framework, describing the Enforcement Directorate (ED) as a “model agency” for its efficiency in tracing and confiscating illicit assets.

Background:

The recognition comes through FATF’s new report titled “Asset Recovery Guidance and Best Practices”, which highlights India’s legal and institutional mechanisms as global best practices for effective asset recovery and inter-agency coordination.

Highlights of the FATF Report:

The FATF commended India’s asset recovery framework for its efficiency, coordination, and legal robustness in tracing and confiscating illicit assets.

In its global report “Asset Recovery Guidance and Best Practices,” FATF described the ED as a “model agency”, citing its successful case examples of value-based confiscation, provisional attachment, and inter-agency cooperation.

·        The FATF highlighted that India’s framework under the Prevention of Money Laundering Act (PMLA), 2002, and the Fugitive Economic Offenders Act (FEOA), 2018, provides strong legal tools for recovering proceeds of crime—making it an international benchmark for asset recovery.

·        Example: Coordination between the Enforcement Directorate and a state criminal investigation department in a major investment fraud case resulted in the recovery of assets worth approximately ₹60 billion (US$690 million) to victims.

Impact on Global Standards and Cooperation:

FATF’s acknowledgment strengthens India’s international reputation as a leader in asset recovery and anti-money laundering enforcement.

·        It validates the ED’s role in shaping global standards and influencing FATF’s updated guidance on flexible, practical, and cooperative approaches to asset tracing—especially for developing and emerging economies facing complex financial crime networks.

·        This recognition is expected to boost India’s influence in global financial governance, foster international cooperation, and encourage other countries to adopt India-inspired frameworks for asset recovery.

About Financial Action Task Force (FATF):

The Financial Action Task Force (FATF) is an inter-governmental body that sets global standards to combat money laundering, terrorist financing, and other threats to the international financial system.

·        Established in 1989, the FATF develops legal, regulatory, and operational measures to counter these threats, and it monitors the implementation of these standards by its member countries.

Conclusion:

FATF’s commendation of India’s asset recovery and enforcement model underscores the country’s growing leadership in global financial integrity. The Enforcement Directorate’s practices exemplify how strong legal foundations, international cooperation, and coordinated enforcement can make asset recovery both effective and just — offering a model for other nations combating financial crimes.