CJI Surya Kant Says Less Than 1% of Illicit Wealth Is Recovered Globally

Chief Justice of India Surya Kant has highlighted the enormous scale of global money laundering, saying illicit wealth moved in a single year could theoretically buy a modest laptop for every one of the world's eight billion people.

Addressing the closing session of the 43rd International Symposium on Economic Crime in Cambridge, the CJI said the biggest challenge was not merely identifying economic crime but tracing, freezing and recovering the proceeds generated from it.

Justice Surya Kant said that, according to global estimates, the amount of money laundered annually is so large that it could theoretically provide a laptop to every person on the planet, with money left over.

He stressed the stark gap between the scale of illicit wealth and the amount actually recovered, saying that less than 1% of criminal proceeds are recovered, according to his assessment.

CJI calls for focus on recovery

The CJI argued that the global fight against economic crime needs to move beyond speeches, investigations and reports towards actually recovering stolen assets.

He said authorities must strengthen systems for tracing, freezing and returning illicit wealth, particularly because criminal proceeds can move rapidly across borders and jurisdictions.

Justice Kant noted that economic crime is not a modern phenomenon. While technology and financial systems have changed the way fraud is committed, financial wrongdoing has existed for centuries.

From ancient fraud to modern money laundering

The CJI referred to the fourth-century BC Greek merchant Hegestratos, who allegedly planned to sink his ship after selling its cargo in order to claim insurance, as an early example of economic fraud.

He also cited Kautilya's Arthashastra, which identified 40 methods through which officials could siphon off state revenue.

According to Justice Kant, ancient measures such as audits, informants, cross-verification and confiscation offer lessons for modern economic-crime enforcement.

He called for those traditional methods to be complemented by modern systems capable of tracing and recovering criminal proceeds.

India's legal framework against economic crime

Justice Kant highlighted India's institutional response to financial crime, including the Prevention of Money Laundering Act, 2002, the Fugitive Economic Offenders Act, 2018, specialised investigative agencies and special courts.

These mechanisms are designed to help authorities trace, attach and confiscate proceeds of crime.

However, the CJI stressed that domestic enforcement alone is insufficient because illicit wealth frequently crosses international borders.

International cooperation is crucial

Justice Kant emphasised the importance of Mutual Legal Assistance Treaties, financial intelligence sharing and beneficial ownership registries in tracking money hidden across jurisdictions.

He said international cooperation can play a crucial role in bringing recovered assets back to the country where the crime occurred.

The challenge is particularly significant because criminals can move illicit wealth between countries much faster than traditional legal processes can respond.

New-age scams add to the challenge

The CJI also pointed to emerging forms of economic crime, including digital arrest scams, in which fraudsters impersonate government or law-enforcement officials to intimidate victims into transferring money.

He stressed that stronger enforcement must remain firmly within the rule of law.

Ultimately, Justice Surya Kant said the success of the global fight against economic crime should not be judged by how extensively the problem is discussed, but by how effectively criminal wealth is traced, frozen and returned.