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.
