The Enforcement Directorate (ED) has achieved a milestone by securing its first Interpol "Purple Notice" in a trade-based money laundering case. The notice, issued on August 21, 2025, alerts Interpol's 196 member countries to the methods, objects, devices, and concealment tactics employed by criminals involved in trade-based money laundering.

Purpose of the Purple Notice

A Purple Notice is one of eight types of notices issued by Interpol. It serves to provide or seek information about criminals' modus operandi, objects, devices, and hiding methods. Unlike a Red Notice, a Purple Notice is not an arrest warrant. It is typically issued when Interpol believes the person in question is involved in criminal activity but there isn't enough evidence for a Red Notice. By sharing intelligence on criminal tactics, the Purple Notice helps law enforcement agencies worldwide understand and counter emerging crime trends effectively.

The ED's Money Laundering Case

The Purple Notice was issued in connection with an ED investigation into a sophisticated trade-based money laundering network. The ED's investigation revealed an organized 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 * Carrying out circular re-exports through third-country entities to disguise illicit remittances

This circular trading created a false narrative of international commerce, masking the 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.

Significance and Implications

The issuance of the Purple Notice underscores the ED's proactive role in exposing sophisticated money laundering methodologies and contributing to the global fight against financial crime. Money laundering is a complex process that often involves cross-border elements, making international cooperation crucial. The Purple Notice:

• Enhances awareness: It alerts global law enforcement agencies to emerging money laundering trends.
• Facilitates intelligence sharing: It helps law enforcement agencies worldwide understand and counter emerging crime tactics through shared intelligence.
• Strengthens international cooperation: It promotes timely intelligence sharing and methodologies to counter transborder crimes.
• Reinforces India's leadership: It highlights India's growing leadership in international financial intelligence and its role in shaping global financial crime policies.

Purple Notice vs. Red Notice

While both Purple Notices and Red Notices are issued by Interpol, they serve different purposes.

• Red Notice: This is the "closest instrument to an international arrest warrant in use today". It seeks the location and arrest of individuals wanted for prosecution or to serve a sentence. Red Notices are issued for serious crimes like murder, terrorism, human trafficking, and drug trafficking.
• Purple Notice: This notice focuses on providing information about criminals' methods of operation, objects, devices, and hiding tactics. It is not an arrest warrant and is typically issued when there is not enough evidence for a Red Notice.

In essence, a Red Notice is a request for arrest, while a Purple Notice is a request for information about criminal activities.

The ED's successful publication of its first Purple Notice demonstrates its commitment to combating financial crime and its growing influence in international law enforcement. By sharing information on emerging money laundering techniques, the ED is helping to protect the global financial system and prevent safe havens for illicit wealth.