Enforcement Directorate of India (ED) has issued its first ever Purple Notice via INTERPOL concerning complex trade-based money laundering (TBML) that involved criminal networks. The Purple notice published on August 21, 2025, represents an important part of India’s growing initiative to address complex financial crime transcending borders.
INTERPOL published a Purple Notice on the request of ED, on a case exposing a trade-based money laundering scheme using shell entities, under-invoiced imports & forged docs. Purple Notice is one of eight types published by Interpol, providing member countries with “information on…
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Globally Shared Alert With 196 Countries
This Purple Notice published the General Secretariat in Lyon to all 196 member countries is useful, since 196 member nations were provided comprehensive “intelligence identifies the pattern of behaviour, objects, measures, and concealment methods the criminal networks used for TBML.” Whereas it is important to note, the Purple Notice is not an arrest warrant, the Notice provides a method for notifying international agencies, on criminal methods that need to be reported to law enforcement globaliy, and encourages timely sharing of intelligence and information.
The Purple Notice released by INTERPOL’s General Secretariat in Lyon offers intelligence to 196 member countries about the methods of operations, items, gadgets and concealment methods used by criminal networks. While Purple Notices are not arrest warrants, they serve to inform other countries and jurisdictions of organized criminal methods and encourage timely exchange of intelligence among member countries.
The action comes after the investigation by the ED revealed an organized framework of shell firms running in India and outside the country that laundered money as part of international businesses. The people involved exploited trade mechanisms and banking channels, with respect to under-invoicing imports, manufactured duty-free imports like semiconductors, and manufactured documents to show compliance, while conducting circular re-exports from a third country and other methods to further disguise the remittances associated with them.
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.”
Enhancing Global Collaboration
When discussing the international aspect of the crime, the ED said, “While there are certain legal measures and mechanisms that can be utilized to combat money laundering effectively, there is a need for pragmatic reasoned action and timely exchange of information (involving other jurisdictions). The agency has made it a priority to operate through informal cooperation within the ambit of expert groups and organizations working on a global scale for the purpose of tracing assets and gathering intelligence.
Proactive Measure In The Global Fight Against Financial Crimes
“The issuance of the Purple Notice is indicative of ED’s proactive measure in the uncovering of complex financial crimes as well as enhancing global cooperation,” said the agency.
India is increasingly using platforms such as the Globe Network, Asset Recovery Interagency Network- Asia Pacific to engage with global policies and global cooperation. The Purple Notice has already facilitated the sharing of information between several jurisdictions, reinforcing India’s position with respect to serious and sophisticated financial crimes with an international dimension.
