NEW DELHI: In a first, the ED has secured an Interpol Purple Notice on trade-based money laundering modus operandi. The notice was published on August 21 and alerts all investigative agencies across Interpol's 196 member countries to keep watch on shell entities engaged in such activities.
The enforcement agency has shared an organised network of domestic and foreign shell entities engaged in large-scale laundering of funds under the guise of international trade. "The conspirators exploited trade mechanisms and banking channels by under-invoicing imports, using sham duty-free imports (such as semiconductors), forging compliance documents, and carrying out circular re-exports through third-country entities to disguise illicit remittances," the ED said.
The Purple Notice is one of eight types published by Interpol, providing member countries with information on modus operandi, objects, devices and concealment methods used by criminals.
"The circular trading created a false narrative of international commerce, masking large-scale laundering of funds. The scheme exhibited hawala-like features but operated through formal banking systems, shell companies, and forged trade documentation to evade regulatory detection," the ED said, and added that the publishing of the notice is an attempt at generating awareness and sensitising its global counterparts to these new emerging money laundering trends .
The agency said timely and precise gathering of information through informal cooperation is vital to effective domestic investigation. India has been sensitising expert groups and organisations active at international level which may be instrumental in facilitating informal cooperation between jurisdictions.
India through ED is utilising platforms like Globe Network and Asset Recovery Interagency Network-Asia Pacific to shape global policies for combating money laundering and preventing safe havens for the proceeds of crime. "The publishing of this Purple Notice also serves as a testimony to the leadership role being assumed by India, through ED on various international platforms," a senior officer said.
The enforcement agency has shared an organised network of domestic and foreign shell entities engaged in large-scale laundering of funds under the guise of international trade. "The conspirators exploited trade mechanisms and banking channels by under-invoicing imports, using sham duty-free imports (such as semiconductors), forging compliance documents, and carrying out circular re-exports through third-country entities to disguise illicit remittances," the ED said.
The Purple Notice is one of eight types published by Interpol, providing member countries with information on modus operandi, objects, devices and concealment methods used by criminals.
"The circular trading created a false narrative of international commerce, masking large-scale laundering of funds. The scheme exhibited hawala-like features but operated through formal banking systems, shell companies, and forged trade documentation to evade regulatory detection," the ED said, and added that the publishing of the notice is an attempt at generating awareness and sensitising its global counterparts to these new emerging money laundering trends .
The agency said timely and precise gathering of information through informal cooperation is vital to effective domestic investigation. India has been sensitising expert groups and organisations active at international level which may be instrumental in facilitating informal cooperation between jurisdictions.
India through ED is utilising platforms like Globe Network and Asset Recovery Interagency Network-Asia Pacific to shape global policies for combating money laundering and preventing safe havens for the proceeds of crime. "The publishing of this Purple Notice also serves as a testimony to the leadership role being assumed by India, through ED on various international platforms," a senior officer said.
You may also like
Antony breaks silence after Real Betis withdraw transfer bid for Man Utd flop
India can't afford to rely on foreign supplies in defence sector: Rajnath
PM Modi received a Daruma doll as a gift in Japan. Know what the Indian connection is and why it is special for the Japanese?
Patios will be gleaming and moss-free with one natural item and no scrubbing
TN CM Stalin embarks on week-long UK, Germany trip to attract investments
