FATF (Financial Action Task Force), an international organization working against financial crimes, has released its new report, named ‘Asset Recovery Guidance and Best Practices’. In this report, countries around the world have been told how the proceeds of crime can be identified, confiscated and returned to the victims. The special thing is that the role of India and ED has been openly appreciated in this report.
According to this report, India played an important role in making this new guideline of FATF. ED officials joined the FATF teams and gave many suggestions, with the help of which these guidelines were prepared. Many cases from India have been included as successful examples. This shows that India has now become a leader country in the world in terms of asset recovery i.e. recovery of illegal property.
Take steps to confiscate property related to crime
FATF’s new guidelines explain what steps countries should take to capture and confiscate property related to any crime. It has been said in the report that countries should make asset recovery their priority. Now property can be confiscated not only after conviction, but also in non-conviction based cases.
An ‘unexplained wealth order’ i.e. account of their property can be sought from the criminals. Investigating agencies should be given the power to freeze assets and take temporary possession at the initial stage itself.
FATF mentioned these cases of India
Countries should focus on intensifying and increasing mutual cooperation, so that criminals cannot escape even by fleeing abroad. The seized property should be used in the interest of the victims or in the public interest. The report mentions several cases in India in which the ED successfully seized the proceeds of crime and provided relief to the victims.
Agri Gold Scam- In this, ED and CID of Andhra Pradesh took action together. Assets worth Rs 60 billion were confiscated and returned to the victims. FATF has described this as an example of excellent ‘domestic coordination’.
IREO Group Case- Assets worth Rs 17.77 billion were seized in India, equivalent to the illegal money sent abroad. This case is an example of value-based confiscation.
BitConnect Ponzi Scheme Case- ED seized cryptocurrency through cyber investigation. Digital assets worth Rs 16.46 billion and other assets worth Rs 4.89 billion were seized. FATF has described this as an example of technology-based investigation…
Banmeet Singh drug smuggling case- Acting on America’s request, ED seized 268 bitcoins (worth approximately Rs 1.3 billion). According to FATF, this is an excellent example of international cooperation (MLA- Mutual Legal Assistance).
Rose Valley Scam- ED seized assets worth Rs 5.38 billion, which the High Court committee returned to more than 75,000 investors. FATF has praised this case as victim-centred restitution.
India’s system an effective model for the world
The report praised India’s Prevention of Money Laundering Act (PMLA) and Fugitive Economic Offenders Act (FEOA) as a strong legal framework. FATF said that this system of India is an effective model for the world to seize the assets of criminals and bring them to justice.
India continuously raised the issue in FATF meetings that developing countries should also be kept in mind, because sometimes investigation in cross-border cases becomes difficult. Based on India’s suggestions, the FATF stressed on flexible and practical measures such as quick freezing, facilitating investigations through mutual understanding and adopting new technologies to identify digital assets.
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