- A major international criminal gang involved in the illegal drug trade has been successfully dismantled by the NCB
- The NCB worked closely with foreign and state police forces in India, resulting in the arrest of 40 people and the seizure of a significant amount of drugs and cash
- The organization conducted a financial investigation that resulted in the recovery of millions of drug money and the freeze of illicit assets worth at least INR 500,000,000
The Narcotics Control Bureau (NCB) has successfully uncovered and dismantled an international criminal gang that used the DarkNet and cryptocurrency to distribute illegal drugs across multiple countries. Countries affected include the United States, Canada, and the Netherlands. The syndicate also had connections to several states across India, including West Bengal and Himachal Pradesh.
Over 11 months, NCB utilized a range of technologies such as cryptocurrency, fake KYC documents, and digital media to unearth hidden trafficking marketplaces. The traffickers used to post and courier services to keep their illegal activities anonymous and untraceable.
In a coordinated effort, the NCB worked with both foreign and state police forces as well as other drug liaison officers to carry out simultaneous operations resulting in the arrest of 40 people and the seizure of a significant amount of drugs and cash.
Special operations were carried out in Ludhiana, where the NCB busted an international drug syndicate with links to Dubai, Pakistan, and Afghanistan. The syndicate used multiple modes of heroin smuggling, including sea routes and borders, to conduct their illicit activities. The operation led to 17 arrests, including two Afghan heroin processing specialists.
Alongside its hugely successful drug busts, the NCB engaged in a financial investigation that uncovered the Hawala network money payment channels and a group of companies involved in money laundering. The NCB recovered INR 40,000,000 of drug money and froze 35 properties and 24 bank accounts worth INR 320,000,000. During that time, the NCB froze assets worth at least INR 500,000,000.
The efforts of NCB have dealt a significant blow to the illegal drug trade in India and across the globe. With advanced technology and expert coordination, the NCB has demonstrated its unwavering commitment to eradicating the blight of drug trafficking.
India and Its Anti-Money Laundering Rules on Crypto
The Reserve Bank of India (RBI) and the government have both previously called for a ban on cryptocurrencies arguing that they were a danger to the financial system and resembled a Ponzi scheme. According to Reuters, the pro-cryptocurrency sector within India had locked horns with the government, and stakeholders had approached the Supreme Court for an order barring RBI’s restrictions on financial institutions dealing with them.
The new rules will now bring India in line with other jurisdictions that have taken similar steps in recent years. It will apply to the exchange between virtual digital assets and fiat currencies, as well as the transfer of digital assets. Additionally, the safekeeping and administration of virtual digital assets and participation in financial services related to the offer and sale of virtual digital assets will be covered.
India is yet to finalize its legislation surrounding cryptocurrencies. Still, these new rules are expected to provide a direction for the country to move towards greater regulation of cryptocurrencies. It remains to be seen what the impact of these new regulations will be on the cryptocurrency industry in India and how these rules will be enforced.
