ED secures its first Purple Notice from Interpol in money laundering case

In a landmark breakthrough against financial crime, the Enforcement Directorate (ED) has for the first time secured an Interpol Purple Notice to flag a newly discovered trade-based money laundering (TBML) operating network, officials said.

The Purple Notice is one of eight specialised alerts issued by Interpol and is specifically designed to seek or provide information on criminal's style of working, devices, or concealment techniques used by offenders.

It helps law enforcement agencies worldwide understand and counter emerging crime tactics effectively through shared intelligence.

The notice, published on August 21, 2025, has been circulated to all of Interpol’s 196 member countries, alerting global law enforcement agencies to the sophisticated laundering mechanism unearthed by ED.

By publishing this notice, ED has effectively put the international community on guard against an emerging laundering technique that exploits global trade and banking systems.

According to the ED’s probe, an organised network of domestic and foreign shell entities was laundering funds on a large scale under the guise of legitimate international trade.

The conspirators manipulated trade documentation and banking channels by under-invoicing imports, claiming sham duty-free imports such as semiconductors, forging compliance documents, and executing circular re-exports through third-country entities.

This elaborate scheme created a false narrative of cross-border commerce while concealing illicit remittances.

Investigators explained that the method carried hawala-like features, but operated through formal banking systems, shell companies and forged trade documentation to evade regulatory red flags.

Officials said the Purple Notice reflects ED’s proactive approach in tackling money laundering that extends beyond national boundaries.

They emphasised that money laundering is a transborder crime with global consequences and that sharing timely intelligence and methodologies is key to countering such threats.

The agency has been strengthening informal cooperation with international counterparts through networks such as the Globe Network and the Asset Recovery Interagency Network-Asia Pacific (ARIN-AP).

The notice, ED underlined, reinforces India’s role in shaping global financial crime policies and preventing jurisdictions from becoming safe havens for illicit wealth.

By publishing its first Purple Notice, ED has not only spotlighted an innovative money laundering tactic but also underscored India’s growing leadership in international financial intelligence.

The move, officials said, will help member nations detect similar trade-based laundering networks within their own jurisdictions, while also strengthening collaborative investigations.

The development comes at a time when financial crime syndicates are increasingly relying on sophisticated cross-border mechanisms to obscure illicit proceeds.

For ED, the Purple Notice represents both a tactical success in its own case and a strategic milestone in its global outreach against money laundering.

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