ED alerts Interpol member countries on unique money laundering modus operandi; gets Purple Notice published

The Directorate of Enforcement has got published its first Interpol Purple Notice with respect to a unique trade-based money laundering modus operandi detected by the agency during investigations in a case.

“…the ED’s investigating team unearthed a unique modus operandi of the nature of trade-based money laundering, about which it alerted its counterpart global law enforcement agencies across the Interpol’s 196 member countries through this notice. Purple Notice is one of the eight types published by Interpol, providing member countries with ‘information on modus operandi, objects, devices, and concealment methods used by criminals’,” the agency said on Friday (August 29, 2025).

The ED said the publishing of the Purple Notice, on August 21, was an attempt at generating awareness and sensitising its global counterparts to the new emerging money laundering trends.

“In this case, the ED’s probe revealed 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,” it said.

According to the agency, 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.

“Money laundering is a complex process that usually involves trans-border elements and effects. Thus, any legal strategy that is to deal with this common and global problem needs to have a significant international dimension and coordination. Informal cooperation, i.e., cooperation through informal channels is a key area to trace/identify the assets and gathering the information for the ongoing investigations. Timely and precise gathering of information through informal cooperation is vital to effective domestic investigation,” said the agency.

It said publishing the Purple Notice also served as a testimony to the leadership role being assumed by India, through ED, on various international platforms. “India, through Enforcement Directorate, is utilising platforms like Globe Network and Asset Recovery Inter-agency Network-Asia Pacific to shape global policies for combatting money laundering and preventing safe havens for the proceeds of crime,” the Directorate said.