The Enforcement Directorate's 33rd conference in Kevadia focused on using technology like AI to fast-track investigations into financial crimes, track fugitives, and tackle misuse of the IBC framework and undisclosed foreign assets.
The Directorate of Enforcement (ED) conducted its 33rd Quarterly Conference of Zonal Officers (QCZO) on December 5 and 6 in Kevadia, Gujarat. The two-day conference was chaired by the Director, ED, and attended by all Special Directors, Additional Directors, Joint Directors, and Deputy/ Assistant Legal Advisors.
Focus on Technology-Driven Investigations
The 33rd QCZO placed strong emphasis on fast-tracking investigations and efficiently concluding cases through enhanced technology use. The sessions focused on the optimal use of national and international databases, forensic tools, artificial intelligence, OSINT (Open-Source Intelligence) techniques, and digital resources to strengthen evidence collection, enhance analytical capabilities, and expedite complex financial crime investigations.
Tackling High-Impact Cases and Evolving Crimes
During the conference, it was highlighted that identifying high-impact cases that pose a greater threat to financial systems and national security is essential. The discussions emphasised the need for a robust mechanism to collect evidence and adapt to evolving crime patterns, particularly in areas such as money laundering, human trafficking and drug trafficking. Various typologies of offences, including FDI violations, misuse of Global Depository Receipts (GDRs), and the use of cryptocurrency for remittances, were also discussed.
Strengthening Action Against Fugitives
Another critical aspect discussed was strengthening processes to track fugitives and take appropriate action against individuals who evade investigation or trial. The productive use of legal instruments such as Proclaimed Offender proceedings, Fugitive Economic Offender (FEO) declarations, Red Notices, and extradition processes was highlighted. Discussions were also held on enhancing international cooperation in financial crime investigations and ensuring timely communication and coordination among relevant government agencies. The Director, ED, stressed the importance of balancing enforcement with individual rights.
Addressing Misuse of Insolvency and Bankruptcy Code
In continuation of the discussions held during the previous Quarterly Conference, deliberations were held on provisions of the Insolvency and Bankruptcy Code (IBC), 2016, particularly in light of the latest circular issued by the Insolvency and Bankruptcy Board of India in consultation with ED.
The need to address various modes of misusing the IBC framework, such as backdoor asset acquisition, manipulation of the Committee of Creditors (COC), and undisclosed profit transactions, was emphasised. Specific cases illustrating undervalued asset sales and involvement of related parties in voting processes were discussed. The Director, ED, stressed the need for thorough investigations into fraudulent transactions and for strict enforcement of IBC provisions.
Enhancing Asset Disposal Mechanisms
A dedicated session was held on the BAANKNET (Bank Asset Auction Network) platform to discuss its potential for ensuring transparent and efficient auctions and the disposal of seized and confiscated assets. Discussions also covered the possibility of formalising its use through a Memorandum of Understanding (MoU) for asset disposal.
Other Key Areas of Deliberation
The significant topics addressed during the conference included technology-driven investigations, FERA (Foreign Exchange Regulation Act) adjudication, and tackling undisclosed foreign assets and other administrative matters. As mentioned earlier regarding the theme of fast-tracking investigations, emphasis was laid on utilising digital tools and forensic software, including cyber forensic tools, and on capacity building through officer training and the establishment of regional labs.
FERA Adjudication and Black Money Act
The fast-tracking of old FERA adjudication cases was reiterated, and emphasis was placed on completing the lifecycle of all such pending cases across various forums. Discussions were held on the provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act as a predicate offence, implications under FEMA, and tackling such cases through improved coordination with the Income Tax Department.
Administrative and Security Matters
Matters such as deployment of CISF security personnel in field offices, vehicle allocation, recruitment of Assistant Legal Advisors (ALA), and other administrative issues were discussed.
The conference concluded with a mandate to enhance intra-agency cooperation, adopt proactive strategies for the future, and reaffirm ED's commitment to strict enforcement of laws against money laundering, foreign exchange violations, and other economic crimes. (ANI)
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