Q. The Directorate of Enforcement is empowered to investigate cases under which of the following?
- Foreign Exchange Management Act, 1999
- Prevention of Money Laundering Act, 2002
- Fugitive Economic Offenders Act, 2018
Choose the correct answer using the codes given below:
Answer:
1, 2 & 3
Notes:
- TheDirectorate of Enforcement (ED) is a multi-disciplinary organization mandated with investigation of offences of money laundering and violations of foreign exchange laws.
- It functions under the Department of Revenue of the Ministry of Finance.
- Under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA), this Directorate is empowered to sponsor cases of preventive detention with regard to contraventions of FEMA.
- Foreign Exchange Management Act, 1999 (FEMA) is a civil law enacted to consolidate and amend the laws relating to facilitate external trade and payments and to promote the orderly development and maintenance of foreign exchange market in India. ED has been given the responsibility to conduct investigationinto suspected contraventions of foreign exchange laws and regulations, to adjudicate and impose penalties on those adjudged to have contravened the law.
- The ED has been entrusted with the responsibility of executing the provisions of PMLA by conducting investigationto trace the assets derived from proceeds of crime, to provisionally attach the property and to ensure prosecution of the offenders and confiscation of the property by the Special court.
- Lately, with the increase in the number of cases relating to economic offenders taking shelter in foreign countries, the Government of India introduced the Fugitive Economic Offenders Act, 2018 and ED is entrusted with its enforcement.
- ED can not take an action suo motu.One has to complain to any other agency or Police first and then ED will investigate the matter and will identify the accused.