Mumbai: In a landmark move, India’s Enforcement Directorate (ED) has issued its first-ever Purple Notice through INTERPOL, highlighting sophisticated trade-based money laundering (TBML) operations run by criminal networks. The notice, published on August 21, 2025, marks a significant step in India’s efforts to combat complex financial crimes across borders.
Global Alert Shared With 196 Member Nations
The Purple Notice, issued by INTERPOL’s General Secretariat in Lyon, provides 196 member countries with detailed intelligence on the modus operandi, objects, gadgets, and concealment techniques used by criminal networks. While Purple Notices are not arrest warrants, they serve as tools to inform international agencies about sophisticated criminal methods and encourage timely information sharing.
Shell Companies and Circular Trading Exposed
The move follows an ED investigation that uncovered an organised network of shell companies operating both in India and abroad that laundering 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 conducting circular re-exports via third-country entities to disguise illicit remittances.
Beyond Hawala: Banking Channels Exploited
“This circular trading created the appearance of legitimate commerce while facilitating substantial money laundering,” the ED said. “Although similar to traditional hawala networks, this operation relied on formal banking systems, shell companies, and falsified trade documentation to avoid regulatory scrutiny.”
Strengthening International Cooperation
Highlighting the international dimension of the crime, the ED noted that effective legal strategies to counter money laundering require coordinated action and timely information sharing across jurisdictions. Informal cooperation through expert groups and organisations operating globally has been a key focus area for the agency in tracing assets and gathering intelligence.
Proactive Step In Global Financial Crime Battle
“The issuance of this Purple Notice underscores ED’s proactive role in uncovering complex financial crimes and strengthening global cooperation,” the agency added.
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India is actively leveraging platforms such as the Globe Network and the Asset Recovery Interagency Network ,Asia Pacific to shape global policies and facilitate international collaboration. The Purple Notice has already encouraged information sharing between multiple jurisdictions, strengthening India’s stance against sophisticated financial crimes with international implications.
