FATF Hails India's Leadership in Asset Recovery, Citing ED as Global Benchmark

The Financial Action Task Force (FATF) has officially commended India's significant progress in combating financial crimes, specifically recognizing the Enforcement Directorate's (ED) pivotal role in establishing global benchmarks for asset recovery. This acknowledgment comes in FATF's latest 340-page report, "Asset Recovery Guidance and Best Practices," released on November 5, 2025, as reported by PTI.

theprint.in reported, This international recognition underscores India's strengthened position in global financial governance and its robust anti-money laundering (AML) efforts. The report highlights India's effective strategies in tracing, freezing, and restituting proceeds of crime, setting a precedent for other nations, according to The Financial Express.

The Paris-based FATF, an intergovernmental body, sets international standards to combat money laundering, terrorist financing, and other threats to the integrity of the global financial system, as explained by LSEG. Its mandate involves developing policies and monitoring compliance to safeguard financial stability worldwide.

indiatimes.com noted, India's Enforcement Directorate has been lauded as a "model agency" for its efficiency and coordination in confiscating criminal proceeds, Business Standard reported on November 5, 2025. The FATF report cited multiple ED investigations as examples of effective asset recovery practices and inter-agency coordination.

The new FATF guidance, which India actively helped shape, expands the scope of asset recovery to include a wider range of crimes such as fraud, cyber offenses, and investment scams. This comprehensive framework aims to intensify global efforts to recover criminal assets, The Hindu stated on November 5, 2025.

financialexpress.com reported, Indian officials from the ED were integral to the FATF project teams that drafted the revised recommendations, ensuring the guidance reflects operational realities. This substantial contribution highlights India's growing influence in shaping international standards for financial crime enforcement, according to the ED's statement cited by PTI.

The commendation is a testament to India's robust legal framework, particularly the Prevention of Money Laundering Act (PMLA) and the Fugitive Economic Offenders Act (FEOA). These laws, coupled with the ED's operational experience, have significantly contributed to the global guidance on value-based confiscation and provisional attachment, Mint reported on November 5, 2025.

• theprint.in noted, FATF's Evolving Mandate and Global Impact: The Financial Action Task Force (FATF), established by the G7 in 1989, serves as the global watchdog against money laundering and terrorist financing. Its core objectives include setting international standards, monitoring countries' compliance through mutual evaluations, and identifying high-risk jurisdictions, as detailed by AML Watcher. The new "Asset Recovery Guidance and Best Practices" report aims to address the historically low percentage of criminal assets confiscated globally, urging countries to make asset recovery a policy priority.

• India's Proactive Role in Shaping Global Standards: India's active participation in FATF working groups was instrumental in aligning the revised recommendations with practical enforcement needs, Business Standard noted. The Enforcement Directorate's inputs helped shape key aspects of the guidance, including value-based confiscation, provisional attachment, and inter-agency cooperation, reflecting India's comprehensive legal framework under the PMLA and FEOA.

• indiatimes.com reported, Illustrative Case Studies of ED's Success: The FATF report extensively cited several Indian cases as models of effective asset recovery. For instance, in the Agri Gold Ponzi scheme, coordinated efforts by the ED and Andhra Pradesh CID led to the restoration of ₹6,000 crore (approximately USD 690 million) to victims, as reported by Metro India. Another significant case involved the Rose Valley Ponzi scheme, where attached assets worth ₹538 crore were used to reimburse over 75,000 investors, according to Mint.

• Innovative Approaches to Asset Confiscation: India's use of "corresponding value" confiscation, particularly highlighted in the IREO group case where properties worth ₹1,777 crore were attached, was lauded as a "best-in-class application" by FATF, India Today stated. This practice ensures recovery even when original assets are moved abroad or hidden, demonstrating a robust legislative framework and operational capability.

• financialexpress.com noted, International Cooperation and Digital Asset Recovery: The FATF report also recognized India's strong record in international cooperation, citing the Banmeet Singh drug trafficking case where the ED, acting on a US request, seized 268.22 bitcoins worth ₹130 crore and attached other properties. Furthermore, India's swift handling of technology-driven crimes, such as the BitConnect crypto Ponzi scheme where ₹1,646 crore in cryptocurrencies were seized, was praised by Mint.

• Societal Benefit and Victim Restitution Focus: A notable example from a Maharashtra cooperative bank scam involved the ED restoring benami assets worth ₹280 crore, with the confiscated land later repurposed for a new airport, demonstrating direct societal benefits from asset recovery, PTI reported. The FATF urged other member nations to replicate India's victim-focused recovery model, emphasizing restitution and transparency.

• theprint.in reported, Previous FATF Assessments and Future Outlook: India's previous mutual evaluation in September 2024 by FATF, APG, and EAG concluded that its AML/CFT framework was achieving good results, particularly in risk understanding and asset deprivation. While acknowledging areas for improvement like timely trial completion, the current commendation signifies India's continuous enhancement of its financial crime-fighting mechanisms, as per the FATF's 2024 report.