ED Embraces AI for Smarter, Faster Financial Crime Investigations

The Enforcement Directorate (ED) is embracing artificial intelligence (AI), digital forensics and advanced data analytics to strengthen investigations into complex financial crimes while accelerating the return of assets to victims of large-scale frauds. The technology-driven initiative, detailed in the Centre's 'Viksit Bharat @2047: AI-Enabled, Data Driven and Secure Digital Governance' compendium, reflects a major shift towards intelligence-led investigations as money laundering and economic offences become increasingly digital, cross-border and sophisticated.

According to ED Deputy Director Manoj Mittal , AI-assisted analytical tools are being used to identify genuine claimants among lakhs of investors who lost money in Ponzi schemes, multi-level marketing scams and real estate frauds . The agency aims to reduce human error and speed up the restitution process under the Prevention of Money Laundering Act (PMLA) , which allows attached assets to be restored to victims after legal approval.

A key example is the Rose Valley chit fund scam in West Bengal, one of India's largest financial frauds, where nearly 31 lakh claimants have been registered. In 2025 , the ED handed over a ₹517.54-crore demand draft to the Asset Disposal Committee (ADC) to facilitate compensation. To streamline refunds, the ADC has partnered with Stock Holding Document Management Services Limited , a government-owned company, to develop an AI-powered portal capable of extracting KYC details, eliminating duplicate claims through Aadhaar-based verification, matching claimant records, categorising investors by investment size and integrating with banks for faster disbursal.

Beyond victim compensation, the ED is increasingly relying on blockchain analytics, digital forensic tools and integrated financial intelligence to investigate money laundering involving shell companies, nominee directors, benami properties, offshore entities, cryptocurrency wallets and thousands of mule bank accounts. Officials said recent years have witnessed a sharp rise in crypto-linked frauds, online betting applications, cyber-enabled scams and digital arrest frauds , making conventional investigative methods inadequate.

Using AI, investigators can analyse banking records, tax data, corporate filings and property databases simultaneously, uncover hidden financial networks and trace cryptocurrency transactions in real time. Advanced digital forensic tools also help recover deleted electronic evidence, analyse mobile devices and preserve digital records for court proceedings, resulting in stronger prosecution complaints and faster trials.

The agency said the technology-led approach has significantly improved enforcement outcomes. During 2025-26 , the ED provisionally attached assets worth ₹81,422.63 crore under the PMLA , a figure exceeding the cumulative total recorded during the law's first decade by more than 15 times . As financial crimes continue to evolve, the ED's integration of AI and forensic technologies is expected to play a pivotal role in enhancing investigations, recovering illicit assets and delivering quicker justice to victims.