FATF's Recognition of India's Asset Recovery Framework

The Financial Action Task Force (FATF), a global authority on countering terror financing, has recognized India's asset recovery framework in its latest report titled ‘Asset Recovery Guidance and Best Practices’.

Key Highlights

• Model Agency:
  The Enforcement Directorate (ED) is praised as a “model agency” for its effective asset recovery and international coordination efforts.
• Comprehensive Framework:
  The publication provides an updated framework for enhancing global systems of asset recovery against financial crimes.
• India's Contribution:
  •  Officers from the ED were actively involved in drafting and deliberations within FATF project teams. 
  •  Indian examples from ED investigations and operations are featured to illustrate the implementation of FATF principles.

Mechanisms and Achievements

• Effective Mechanisms:
  India's system is noted for its ability to identify, attach, and repurpose assets derived from economic offences.
• Confiscation Processes:
  It is capable of both conviction-based and non-conviction-based confiscations, utilizing technology and inter-agency collaboration.
• Legislative Framework:
  The Prevention of Money Laundering Act (PMLA) allows for swift actions like freezing, attachment, and confiscation of criminal proceeds, even during ongoing trials.
• Inter-agency Coordination:
  The coordination between key entities like the Financial Intelligence Unit (FIU-IND) and the Central Bureau of Investigation (CBI) is appreciated as a practical model for other nations.