Enforcement Directorate

In Context 

The Enforcement Directorate (ED) is in the news now and often.

About Enforcement Directorate 

• It was established in the year 1956 with its Headquarters at New Delhi.
•  It is responsible for enforcement of the Foreign Exchange Management Act, 1999 (FEMA) and certain provisions under the Prevention of Money Laundering Act.
  • Work relating to investigation and prosecution of cases under the PML has been entrusted to the Enforcement Directorate. 
• It is under the administrative control of the Department of Revenue for operational purposes; the policy aspects of the FEMA, its legislation and its amendments are within the purview of the Department of Economic Affairs. Policy issues pertaining to the PML Act, however, are the responsibility of the Department of Revenue. 
  • Before FEMA became effective (1 June 2000), the Directorate enforced regulations under the Foreign Exchange Regulation Act, 1973.

Functions:-

• To collect, develop and disseminate intelligence relating to violations of FEMA, 1999, the intelligence inputs are received from various sources such as Central and State Intelligence agencies, complaints etc.
• To investigate suspected violations of the provisions of the FEMA, 1999 relating to activities such as “hawala” foreign exchange racketeering, non-realization of export proceeds, non-repatriation of foreign exchange and other forms of violations under FEMA, 1999.
• To adjudicate cases of violations of the erstwhile FERA, 1973 and FEMA, 1999.
• To realise penalties imposed on the conclusion of adjudication proceedings.
• To process and recommend cases for preventive detention under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA)
• To provide and seek mutual legal assistance to/from contracting states in respect of attachment/confiscation of proceeds of crime as well as in respect of transfer of accused persons under PMLA.

Source:TH