FATF Praises India’s Asset Recovery System, Calls ED’s Action a Model for Other Countries

Business News: The Financial Action Task Force (FATF), which monitors money laundering, terrorism funding, and financial crimes across the world, has described India's "asset recovery system" as strong and effective. FATF's new report said that India has achieved remarkable success in tracing and confiscating money, property, and digital assets related to crime. This model has emerged as a standard for other countries.

Why did FATF praise India?

According to the report, India has—

• Identification of assets in cases like fraud, Ponzi schemes, crypto fraud, and hawala businesses.
• Freeze and attach them
• and return the money to the victims

India's Enforcement Directorate (ED) has seized and recovered assets worth thousands of crores of rupees over the past few years, including in foreign investment frauds and crypto-based scams.

Which law proved to be most effective?

FATF cited two Indian laws as particularly influential in its report—

• Prevention of Money Laundering Act (PMLA)
• Fugitive Economic Offenders Act

These laws facilitated swift action against fugitive economic offenders, asset confiscation, and access to assets hidden abroad. In several high-profile cases, India extended mutual legal cooperation to bring back assets located abroad, which FATF considered a global example.

 Why did FATF applaud this model?

The report said that India not only seizes money from criminals but also makes the process of getting this money back to the victims simple and fast. FATF included examples of thousands of investors getting their money returned in several major Ponzi fund scams in its review.

Will India get a benefit on the international stage?

Appreciation from international monitoring institutions strengthens India's image and investment confidence. Experts believe that FATF's praise

• Increase foreign investment
• Strengthening cooperation with global financial agencies
• and strict controls on economic crimes
• India's position will become more effective.

Big incentive for government and agencies?

After the report came out, it was seen as a major achievement in government agencies. The Central Government has been continuously claiming that India is now among the leading countries globally in preventing financial crimes.

India has been taking strict measures against terror funding and financial crimes for a long time. FATF's appreciation shows that the combination of technology, legal change, and swift action is now making an impact.