India’s ED Rated ‘Model Agency’ by FATF for Money Laundering & Asset Recovery Efficiency
FATF hails India’s asset recovery system as world-class.
The Financial Action Task Force (FATF), the Paris-based global watchdog on money laundering and terror financing, has declared India’s Enforcement Directorate (ED) a “model agency” in its latest report, Asset Recovery Guidance and Best Practices, released on November 5, 2025. The 120-page document praises India’s framework for tracing, freezing, and repurposing criminal proceeds as one of the most effective among 200+ member jurisdictions, highlighting swift conviction-based and non-conviction-based confiscations under the Prevention of Money Laundering Act (PMLA).
FATF commended the ED’s use of advanced technology, real-time inter-agency coordination with the Financial Intelligence Unit (FIU-IND) and Central Bureau of Investigation (CBI), and innovative “value-based confiscation”—seizing equivalent assets when original illicit property is untraceable. The report cited high-profile recoveries worth thousands of crores from corporate frauds, cooperative bank scams, and Ponzi schemes, where attached funds were directly returned to victims or repurposed for public welfare.
India’s system allows provisional attachment within 24 hours of an FIR and final confiscation even before trial completion—a rarity globally. The FATF noted seamless data-sharing via the FIU-IND platform and cross-border cooperation that enabled repatriation of laundered assets from tax havens. “India demonstrates exemplary speed and victim-centric recovery,” the report stated.
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Officials hailed the recognition as validation of India’s zero-tolerance policy on financial crime. The ED has attached over ₹1.25 lakh crore in assets since 2014, with ₹20,000+ crore restored to victims and banks. Experts say the FATF endorsement strengthens India’s G20 leadership on illicit finance and deters cross-border money laundering.
This global stamp of approval positions India as a template for emerging economies, proving that strong laws, tech-driven enforcement, and institutional synergy can dismantle financial crime networks effectively.
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