FATF handbook uses ED’s joint probe with US into $150 million drugs network as best practice case

AN Enforcement board of directors (ED) investigating into a $150 bazillion darknet based international do drugs smuggling family, run by Haldwani-based brothers, has been included as a best practice case by the Financial Action Task Force (FATF) in its latest handbook on international cooperation on money laundering, as it bats for joint analysis and investigations in specific cases.The practical handbook, titled ‘Handbook on international cooperation against money laundering’, released on Friday, stresses on the use of informal channels between the countries for faster identification, detection and recovery of laundered money compared to time-taking formal channels to speed up investigations and bring more criminals to justice.The global watchdog for money laundering and terror financing also lauded India’s online mutual legal assistance (MLA) portal, and standardised guidelines on international cooperation in criminal matters, saying they provide a “clear and structured framework”.Referring to the probe against the Haldwani-based brothers –– Banmeet Singh and Parvinder Singh, in which ED carried out raids and arrested them, on April 26 and May 1, 2024, respectively, FATF said, “The investigation revealed that the brothers controlled over 8,500 bitcoins, valued at approximately $150 million at the time, which were used for ML (money laundering) and to finance drug trafficking activities. The organisation concealed these assets and their activities through complex transactions involving cryptocurrency exchanges and dark web platforms”. To be sure, FATF has not named the brothers and has referred to them as Mr P and Mr B.The duo, according to an ED statement in 2024, operated an international drug trafficking group known as the Singh DTO (Drug Trafficking Organization). “They used darkweb vendor sites, free ads on regular websites, and a network of distributors to sell drugs in countries like the USA and UK. The organization received proceeds from drug sales in crypto currency through dark web markets and then laundered these funds into real currency via bank accounts. Both brothers used the alias Liston on various dark web platforms including Silk Road 1, Alpha Bay, and Hansa,” ED said.During investigations, ED obtained their key financial records uncovering transfers through a digital payment service provider exceeding ₹5.54 crore to the group, and also recovering 268.22 bitcoins, worth approximately ₹130 crore, which were frozen under the Prevention of Money Laundering (PMLA) Act.An April 2024 statement by the US justice department said that from mid-2012 through July 2017, Banmeet Singh controlled at least eight distribution cells within the United States, including cells located in Ohio, Florida, North Carolina, Maryland, New York, North Dakota, and Washington, among other locations. “Individuals in these distribution cells received drug shipments and then re-packaged and re-shipped the drugs to locations in all 50 states, Canada, England, Ireland, Jamaica, Scotland, and the US Virgin Islands,” the justice department statement read.Banmeet Singh was arrested in London in 2019 and was extradited to the US in 2023. On January 26, 2024, he pleaded guilty in the US after which he was repatriated to India, according to officials who didn’t want to be named.The FATF handbook says, “This case is a strong example of real-time, cross-border co-ordination between the authorities of India and the United States. US officials travelled to India to assist directly in the investigation, including during interviews of the accused, contributing significantly to its progress. The ongoing exchange of intelligence ensured the investigation remained effective and uninterrupted.”It said the joint analysis and investigations “can very efficiently connect the right areas of the competent authorities at the practitioners’ level”.“They facilitate the initiation of collaborative work with minimal bureaucratic friction, enabling the direct gathering and exchange of information and and evidence—often without the need to rely on traditional MLA channels.”On India’s mutual legal assistance initiatives, the FATF said the ministry of home affairs (MHA) –– India’s central authority for international co-operation on criminal matters –– has launched an online MLA portal, to ensure that requests are handled efficiently and uniformly.Additionally, the MHA has established a set of standardised guidelines for international co-operation, issued under the Criminal Procedure Code and the Prevention of Money Laundering Act (PMLA). “These guidelines provide a clear and structured framework for managing incoming and outgoing MLA requests, marking a significant step toward standardising India’s international co-operation efforts,” FATF said.