NEW DELHI: The Financial Action Task Force's ( FATF 's) latest report has appreciated the efforts of Union home ministry's online portal for Mutual Legal Assistance (MLA) to standardise international cooperation on money laundering matters. The report also cited an investigation by ED into a darknet-based Fentanyl syndicate in its 'best practices' section, emphasising the significance of joint investigations.
The joint probe by ED and US' department of justice (DOJ), it said, had led to the dismantling of a major drug trafficking organisation which was laundering proceeds through virtual assets. Elaborating on the case, it said that in 2022, DOJ had sought assistance from the Indian govt under the Treaty on Mutual Legal Assistance in criminal matters to investigate a major drug trafficking organisation led by two brothers.
The investigation, according to FATF, revealed that the brothers controlled over 8,500 bitcoins, valued at $150 million at the time, which were used for money laundering and to finance drug trafficking activities. The organisation concealed these assets and its activities through complex transactions involving cryptocurrency exchanges and dark web platforms.
Responding to the US' request, ED had launched a parallel investigation focused on the organisation's financial networks and obtained key financial records uncovering transfers, through a digital payment service provider, exceeding Rs 5.5 crore to the entity. In April and May 2024, searches led to seizure of 268.2 bitcoins, worth Rs 130 crore, which were frozen, along with the provisional attachment of assets worth Rs 9.6 crore.
"This case is a strong example of real-time, cross-border co-ordination between the authorities of India and the US. US officials travelled to India to assist in the investigation, including during interviews of the accused, contributing significantly to its progress," the report said.
Additionally, home ministry has established a set of standardised guidelines for international co-operation which provide a clear and structured framework for managing incoming and outgoing MLA requests, it noted. "By establishing a predictable and legally compliant process, the online MLA portal has enhanced India's capacity to work with foreign nations, reducing delays and miscommunication, while ensuring timely and effective responses to requests for legal assistance," it further said.
The joint probe by ED and US' department of justice (DOJ), it said, had led to the dismantling of a major drug trafficking organisation which was laundering proceeds through virtual assets. Elaborating on the case, it said that in 2022, DOJ had sought assistance from the Indian govt under the Treaty on Mutual Legal Assistance in criminal matters to investigate a major drug trafficking organisation led by two brothers.
The investigation, according to FATF, revealed that the brothers controlled over 8,500 bitcoins, valued at $150 million at the time, which were used for money laundering and to finance drug trafficking activities. The organisation concealed these assets and its activities through complex transactions involving cryptocurrency exchanges and dark web platforms.
Responding to the US' request, ED had launched a parallel investigation focused on the organisation's financial networks and obtained key financial records uncovering transfers, through a digital payment service provider, exceeding Rs 5.5 crore to the entity. In April and May 2024, searches led to seizure of 268.2 bitcoins, worth Rs 130 crore, which were frozen, along with the provisional attachment of assets worth Rs 9.6 crore.
"This case is a strong example of real-time, cross-border co-ordination between the authorities of India and the US. US officials travelled to India to assist in the investigation, including during interviews of the accused, contributing significantly to its progress," the report said.
Additionally, home ministry has established a set of standardised guidelines for international co-operation which provide a clear and structured framework for managing incoming and outgoing MLA requests, it noted. "By establishing a predictable and legally compliant process, the online MLA portal has enhanced India's capacity to work with foreign nations, reducing delays and miscommunication, while ensuring timely and effective responses to requests for legal assistance," it further said.
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