FATF Expands Asset Recovery Scope Beyond Graft
Kartavya Desk Staff
Source: TOI
Context: The Financial Action Task Force (FATF) has issued new global guidance on asset recovery, expanding its scope beyond corruption to cover crimes like fraud, cyber offences, and money laundering.
About FATF Expands Asset Recovery Scope Beyond Graft:
• What it is? A new 340-page FATF guidance outlining a comprehensive framework for identifying, preserving, managing, and repatriating criminal assets across borders — moving beyond graft to tackle broader economic and financial crimes.
• A new 340-page FATF guidance outlining a comprehensive framework for identifying, preserving, managing, and repatriating criminal assets across borders — moving beyond graft to tackle broader economic and financial crimes.
• New Features:
• Wider coverage: Expands asset recovery to include fraud, cybercrime, investment scams, and money laundering. Lifecycle approach: Follows every stage — from legal framework setup to international cooperation and restitution of assets. Best practices from India: Cites ED cases such as Agri Gold (₹6,000 cr restored), IREO realty scam (₹1,800 cr attached), and BitConnect crypto fraud (₹1,646 cr seized). Victim-centric recovery: Promotes restitution and compensation for victims, citing India’s Rose Valley case.
• Wider coverage: Expands asset recovery to include fraud, cybercrime, investment scams, and money laundering.
• Lifecycle approach: Follows every stage — from legal framework setup to international cooperation and restitution of assets.
• Best practices from India: Cites ED cases such as Agri Gold (₹6,000 cr restored), IREO realty scam (₹1,800 cr attached), and BitConnect crypto fraud (₹1,646 cr seized).
• Victim-centric recovery: Promotes restitution and compensation for victims, citing India’s Rose Valley case.
About FATF:
• What it is? An intergovernmental body that sets global standards for combating money laundering, terror financing, and proliferation financing.
• An intergovernmental body that sets global standards for combating money laundering, terror financing, and proliferation financing.
• Established in: 1989, by G7 member countries at the Paris Summit.
• Headquarters: Paris, France.
• Aim: To protect global financial systems from criminal misuse and ensure the integrity and stability of the international economy.
• To protect global financial systems from criminal misuse and ensure the integrity and stability of the international economy.
• Functions:
• Set global standards: Develop and update FATF Recommendations to counter money laundering and terror financing. Monitor compliance: Conduct mutual evaluations to assess members’ adherence to FATF norms. Identify high-risk jurisdictions: Maintain grey and black lists for countries with strategic deficiencies. Promote cooperation: Facilitate international collaboration for financial investigations and asset recovery. Respond to emerging threats: Tackle new risks like cryptocurrency misuse, cyber laundering, and terror funding networks. Support UN and G20 mandates: Align actions with UN Security Council resolutions and global anti-terror frameworks.
• Set global standards: Develop and update FATF Recommendations to counter money laundering and terror financing.
• Monitor compliance: Conduct mutual evaluations to assess members’ adherence to FATF norms.
• Identify high-risk jurisdictions: Maintain grey and black lists for countries with strategic deficiencies.
• Promote cooperation: Facilitate international collaboration for financial investigations and asset recovery.
• Respond to emerging threats: Tackle new risks like cryptocurrency misuse, cyber laundering, and terror funding networks.
• Support UN and G20 mandates: Align actions with UN Security Council resolutions and global anti-terror frameworks.