Enforcement Directorate

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  • Topic: Foreign Exchange Management Act, Money laundering, Foreign Exchange Regulation Act
  • Pages : 5 (1242 words )
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  • Published : February 6, 2013
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Enforcement Directorate ‡Pertains to the establishment of Directorate of Enforcement and the powers to investigate the violation of any provisions of Act, rule, regulation, notifications, directions or order issued in exercise of the powers under this Act. The Director have been empowered to take up investigations. Enforcement Directorate ‡ The Directorate of Enforcement is mainly concerned with the enforcement of the provisions of the FEMA to prevent leakage of foreign exchange which generally occurs through the following malpractices. 2.Remittances of Indians abroad otherwise than through normal banking channels, i.e. through compensatory payments. 3.Acquisition of foreign currency illegally by person in India. 4.Unauthorized maintenance of accounts in foreign countries. 5.Illegal acquisition of foreign exchange through Hawala. 6.Secreting of commission abroad. Organizational Set-Up *The Enforcement directorate, with its HQs at New Delhi has seven zonal offices at Bombay, Calcutta, Delhi, Jalandhar, Madras, Ahmedabad and Bangalore. The zonal offices are headed by the Dy. Directors * The Directorate has 9 sub zonal offices at Agra,Srinagar, Jaipur, Varanasi, Trivendrum, Calicut, Hyderabad, Guwahati and Goa, which are headed by the Asstt. Directors.

FEMA 1999 ENFORCEMENT DIRECTORATE Established by Central Govt to investigate due adherence to the provisions of the Act by market participants. Concerned with enforcement of the provisions of the Act to prevent leakage of foreign exchange occurring through various malpractices. Directorate of Enforcement is responsible for detection of cases relating to violation and performance of adjudicatory functions to curb malpractices

FUNCTIONS To collect and develop intelligence relating to violation of provisions of FEMA. To conduct searches of suspected persons, conveyances and premises for seizing incriminating materials. To enquire into and investigate suspected violations or provisions of FEMA. To adjudicate cases of violations of FEMA for levying penalties and also for confiscating the amounts involved in contraventions. To realise penalties in departmental adjudication.

The Parliament has enacted the Foreign Exchange Management Act,1999 to replace the Foreign Exchange Regulation Act, 1973. This Act came into force on the 1st day of June,2000. To investigate provisions of the Act, the Central Govt. have established the Directorate of Enforcement with Director and other officers as officers of the Enforcement.

ROLE OF ENFORCEMENT DIRECTORATE

The Directorate of Enforcement is mainly concerned with the enforcement of the provisions of the Foreign Exchange Management Act to prevent leakage of foreign exchange which generally occurs through the following malpractices 1) Remittances of Indians abroad otherwise than through normal banking channels, i.e. through compensatory payments. Acquisition of foreign currency illegally by person in India. Non²repatriation of the proceeds of the exported goods. Unauthorised maintenance of accounts in foreign countries. Under²invoicing of exports and over²invoicing of imports and any other type of invoice manipulation. Siphoning off of foreign exchange against fictitious and bogus imports land by Illegal acquisition of foreign exchange through Hawala. Secreting of commission abroad.

2) 3) 4) 5)

6) 7) 8)

Directorate has to detect cases of violation and also perform substantial adjudicatory functions to curb such malpract ices. ORGANISATION SET-UP

The Enforcement Directorate, with its Headquarters at New Delhi has seven zonal offices at Bombay, Calcutta, Delhi, Jalandhar, Madras, Ahmedabad and Bangalore. The zonal offices are headed by the Deputy Directors. The Directorate has nine sub²zonal offices at Agra, Srinagar, Jaipur, Varanasi, Trivandrum, Calicut, Hyderabad, Guwahati and Goa, which are headed by the Assistant Directors. The Directorate has also a Unit at Madurai, which is headed by a Chief Enforcement Officer....
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