(MENAFN- Live Mint) New Delhi: India's pursuit of financial crime has earned global recognition, with the Financial Action Task Force (FATF) citing several cases as models of effective asset recovery in its new global guidance.

The Paris-based watchdog's latest report, Asset Recovery Guidance and Best Practices, released on Wednesday, showcases India's success in tracing, freezing, and returning illicit wealth, from massive investment frauds to cryptocurrency-linked scams, under the Prevention of Money Laundering Act and the Fugitive Economic Offenders Act.

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The FATF is an intergovernmental body that sets global standards and formulates policies to combat money laundering, terrorist financing, and the funding of weapons of mass destruction.

India's directorate of enforcement (ED) played an active role in shaping the updated framework, FATF said in its latest report.

“Under the Prevention of Money Laundering Act (2002), an officer authorized through a warrant issued under the Act can effect the seizure of property without any prior court order, and also issue an order to freeze property where it is not practical to seize it,” the FATF report said.

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According to the latest FATF report, among the cases spotlighted, the agri gold scam stands out, with a coordinated effort between the ED and Andhra Pradesh police helping recover ₹60 billion ($690 million) for victims of an investment fraud.

The FATF also praised India's swift handling of technology-driven crimes. In the BitConnect Ponzi Scheme, the watchdog pointed out that investigators seized cryptocurrencies worth ₹16.46 billion ($190 million) and attached other assets valued at ₹4.89 billion ($56 million), securing the digital holdings in a cold wallet to preserve value.

India's cooperation with foreign authorities also drew attention in the report. The FATF cited the Banmeet Singh case, in which India acted on a US request related to drug trafficking and money laundering, seizing 268 bitcoins worth ₹1.3 billion ($29 million) and attaching properties worth $1.1 million.

Indian cases like Rose Valley and Pen Urban Cooperative Bank were also held up as examples of victim-focused restitution.

In the former, attached assets worth ₹5.38 billion ($62.8 million) were used to reimburse more than 75,000 investors, while in the latter, ₹2.9 billion ($33.2 million) in benami properties were handed over to state authorities for depositors' compensation.

The FATF's new framework broadens asset recovery beyond confiscation, urging countries to adopt measures such as unexplained wealth orders, non-conviction-based seizures, and early freezing powers, while ensuring transparency and due process.

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It also credited India with helping steer the global body's approach toward more practical, cooperative mechanisms for faster cross-border asset recovery.

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