FATF Praises India’s Asset Recovery System, Cites ED As Global Model Agency

Last Updated:November 05, 2025, 14:41 IST

FATF said India has built a well-coordinated and technology-driven mechanism for asset recovery, combining legal tools with operational collaboration across multiple agencies.

FATF Hails ED’s Asset Recovery Model. (Representative Image)

The Financial Action Task Force (FATF), the global watchdog overseeing efforts to curb money laundering and terror financing, has commended India’s asset recovery mechanism, describing it as one of the most effective among its member countries.

In its newly released report, “Asset Recovery Guidance and Best Practices", FATF highlighted the Enforcement Directorate (ED) as a model agency for its efficiency in tracing, attaching, and confiscating criminal proceeds. The report noted that India’s system represents a robust framework capable of recovering assets derived from economic and financial crimes.

What FATF report said?

FATF observed that India has built a well-coordinated and technology-driven mechanism for asset recovery, combining legal tools with operational collaboration across multiple agencies. It particularly praised India’s dual approach, which allows both conviction-based and non-conviction-based confiscations, ensuring that assets can be seized even before the completion of criminal trials.

The report also lauded India’s legislative strength under the Prevention of Money Laundering Act (PMLA), which enables authorities to swiftly freeze, attach, and confiscate assets suspected of being linked to criminal activity. This, FATF said, has made India’s enforcement model one of the most responsive and adaptable among member nations.

FATF highlights India’s strong inter-agency cooperation

The FATF report commended the coordination between key Indian institutions, including the Financial Intelligence Unit (FIU-IND), the Central Bureau of Investigation (CBI), and the Enforcement Directorate (ED). The synergy between these agencies, it said, has created a “practical model for other countries" to study and replicate.

As an example, the report referred to several high-value recoveries in India, including cases involving corporate frauds, cooperative bank scams, and investment schemes, where assets worth thousands of crores were attached and later repurposed for public benefit. In many of these cases, funds were successfully returned to victims through structured restitution measures.

One of the aspects that received special mention was India’s use of value-based confiscation, which allows equivalent assets to be seized when the original property cannot be traced. According to FATF, this approach significantly strengthens the deterrent effect against financial offenders and ensures that no illicit gain remains out of reach.

Shuddhanta Patra

Shuddhanta Patra, a seasoned journalist with eight years of experience, serves as Senior Sub‑Editor at CNN News 18. With expertise across national politics, geopolitics, business news, she has influenced public...Read More

Shuddhanta Patra, a seasoned journalist with eight years of experience, serves as Senior Sub‑Editor at CNN News 18. With expertise across national politics, geopolitics, business news, she has influenced public...

Read More

News india FATF Praises India’s Asset Recovery System, Cites ED As Global Model Agency

Read More