The Financial Action Task Force, the global organisation that monitors money laundering and terror financing, has praised India’s asset recovery system, describing it as one of the most effective among all member countries.

In its latest report titled “Asset Recovery Guidance and Best Practices”, FATF highlighted the Enforcement Directorate as a model agency known for its success in tracing, attaching, and seizing assets earned through criminal activities. The report said India has built a strong framework for recovering wealth obtained from financial and economic crimes.

According to the report, India has developed a well-coordinated and technology-driven process that combines legal tools with cooperation among several agencies. FATF praised India’s dual approach, which allows both conviction-based and non-conviction-based confiscation, meaning assets can be seized even before the completion of trials.

The report also commended India’s strong laws under the Prevention of Money Laundering Act, which allow authorities to swiftly freeze, attach, and confiscate assets linked to crime. FATF said these measures have made India’s enforcement system one of the most responsive and adaptable among its members.

FATF further appreciated the cooperation between major Indian agencies, including the Financial Intelligence Unit, the Central Bureau of Investigation, and the Enforcement Directorate. It said that the teamwork among these institutions has created a “practical model for other countries” to study and learn from.

The report cited examples of major recoveries in India, such as cases involving corporate frauds, cooperative bank scams, and investment schemes, where assets worth thousands of crores were seized and later used for public benefit. In several cases, funds were also returned to victims through structured repayment processes.

One aspect that received special praise was India’s use of value-based confiscation, which allows equivalent assets to be seized when the original property cannot be located. FATF said this approach greatly strengthens deterrence and ensures that offenders do not escape with illegal gains.