The Financial Action Task Force recommendations also call on countries to strengthen mechanisms for rapid and informal cross-border cooperation. File | Photo credit: AP
The global intergovernmental Financial Action Task Force (FATF) issued the so-calledAsset Recovery Guidelines and Best Practices” guidelines that provide a comprehensive and updated framework for strengthening the global asset recovery system against financial crimes.
“The guidance follows one of the most significant global reforms to the FATF standards on confiscation and international cooperation in more than three decades. It outlines practical measures for policymakers and practitioners to identify, trace, freeze, manage, confiscate and return criminal assets,” the Enforcement Directorate (ED) said on Wednesday 5 November 2025.
He claims it India played a significant role in the development of both the revised FATF standards and the guidelines, the agency said its officials were part of the FATF project teams that developed the revised recommendations and participated in relevant working groups and plenary sessions.
“The document contains several examples from cases investigated by the ED, which are cited as models of effective asset recovery practice and interagency coordination. This recognition reflects the growing international standing of India and the ED in the global discourse on asset recovery and financial crime enforcement,” he said.
The new framework expands the definition of asset recovery to cover the entire process from the identification of criminal assets to their eventual seizure and return. “For the first time, FATF has mandated that countries provide for confiscation without conviction, which will allow authorities to recover criminal assets even in the absence of a criminal conviction where prosecution is not possible or practical,” the agency said.
The guidance also supports the adoption of tools such as extended confiscations and unexplained asset orders, which require individuals to demonstrate the lawful origin of their assets where there is reasonable suspicion of a criminal connection. More emphasis has been placed on interim measures to secure assets at an early stage and prevent their loss, including ex parte freezing powers and interim proceedings to preserve value.
The recommendations also call on countries to strengthen mechanisms for rapid and informal cross-border cooperation. “It emphasizes the importance of transparency, accountability and victim-focused asset recovery while maintaining public trust and ensuring that seized proceeds are used for legitimate public or victim-related purposes,” the ED said.
The FATF guidelines specifically refer to many examples of Indian cases from the ED, including a case involving the Agri Gold group, in which the agency and the Andhra Pradesh Crime Investigation Department coordinated the seizure of assets, resulting in the recovery of ₹6,000 million to victims of an investment scam. Another case related to IREO Group involves the attachment of assets worth ₹1,777 crore, which is equivalent to proceeds of crime remitted abroad.
It presents a case of BitConnect Ponzi scheme where the ED has seized cryptocurrencies worth about ₹1,646 crore. The seized virtual assets were secured in a wallet held by the agency and other movable and immovable assets worth ₹489 crore were attached.
Another case is Banmeet Singh and others, where India received an MLA from the US in relation to two Indian individuals who are being investigated for alleged drug trafficking and money laundering. Based on this request, the ED conducted searches and seized 268.22 bitcoins worth about ₹130 crore and other assets.
“In one case, the case of the Rose Valley Scheme is highlighted, where they obtained public funds through secured bonds and transferred the money to shell companies. The ED provisionally froze the assets and coordinated with the Supreme Court-constituted Asset Management Committee to manage the restitutions. The court allowed the release of seized properties worth ₹538 million to pay more than 75,000 investors.”
In the Pen Urban Cooperative Bank case, the accused manipulated accounts and siphoned off deposits through “benami” accounts. The ED has attached assets worth ₹290 crore and handed them over to the Maharashtra Depositors Protection Authority for restitution after liquidation.
“The guidelines also refer to Indian practices related to coordination between law enforcement, financial intelligence and revenue authorities, use of appropriate attribution and application of technology and financial data analysis in asset tracing and interim management. India’s legislative framework under the Prevention of Money Laundering Act and the Fugitive Economic Offenders Act is cited as a comprehensive framework to support effective recovery and asset management,” the ED said.
Published – 5 Nov 2025 22:49 IST
