Contact details
Phone No: +91 98248 84900
Email Id: info@amlindia.in
The Role of the Enforcement Directorate in Combatting Financial Crimes in India
The Role of the Enforcement Directorate in Combatting Financial Crimes in India
The Role of the Enforcement Directorate (ED) in Combatting Financial Crimes in India is pivotal as the ED is empowered to investigate offences of money laundering and violations of foreign exchange laws.
The Directorate of Enforcement enforces the following laws in India:
1. The Prevention of Money Laundering Act, 2002 (PMLA):
The Prevention of Money Laundering Act, 2002 (PMLA) aims to prevent financial crimes. It is a criminal law enacted to confiscate assets derived from financial crimes and prevent money laundering.
The Enforcement Directorate (ED) is entrusted with investigating and tracing illicit assets. The ED can also attach properties provisionally and ensure prosecution of the offenders and confiscation of the property by the Special court.
2. The Foreign Exchange Management Act, 1999 (FEMA):
The Foreign Exchange Management Act, 1999 (FEMA) is a civil law that consolidates and amends the laws related to foreign trade and payment. It aims to promote the orderly development and maintenance of the foreign exchange market in India.
The Enforcement Directorate is entrusted to investigate suspected foreign exchange law contraventions and adjudicate and impose penalties on those convicted of contravening the law.
3. The Fugitive Economic Offenders Act, 2018 (FEOA):
The Fugitive Economic Offenders Act, 2018 (FEOA) aims to deter financial crime perpetrators from avoiding the Indian judicial process by escaping to foreign countries.
The ED is empowered to attach the properties of the absconders and provide for confiscating their assets to the Central Government.
4. The Foreign Exchange Regulation Act, 1973 (FERA):
The Foreign Exchange Regulation Act, 1973 (FERA) has been repealed. However, the ED is supposed to adjudicate the already issued Show Cause Notices until 31st May 2002.
The ED is empowered to impose penalties and pursue prosecutions launched under FERA in the concerned courts.
5. Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA):
The Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) empowers the ED to sponsor cases of preventive detention about contraventions of FEMA.
We are committed to assisting proper enforcement of AML and CFT regulations to regulated entities in India by designing a personalised AML framework – policies, internal controls, and procedures – and ensuring effective implementation of the same.
Important Links
subscribe to newsletter
