Directorate of Enforcement as per Foreign Exchange Management Act, 1999

The Directorate of Enforcement (ED) is a law enforcement agency under the Ministry of Finance, Government of India. The ED is responsible for enforcing the provisions of the FEMA and other laws relating to foreign exchange.

The ED has the following powers:

  • To investigate violations of the FEMA.
  • To seize assets that are proceeds of crime or are used to commit a crime.
  • To prosecute persons who have violated the FEMA.
  • To issue directions to persons to comply with the FEMA.

The ED has a number of specialized units, including:

  • The Foreign Exchange Control Unit (FECU): This unit is responsible for investigating violations of the FEMA relating to foreign exchange control.
  • The Economic Offences Wing (EOW): This unit is responsible for investigating economic offences, including money laundering and counterfeiting.
  • The Asset Management Unit (AMU): This unit is responsible for managing the assets that have been seized by the ED.

The ED works closely with other law enforcement agencies, such as the Central Bureau of Investigation (CBI) and the National Investigation Agency (NIA), to investigate and prosecute cases of foreign exchange violations.

MCQs on Directorate of Enforcement as per Foreign Exchange Management Act, 1999

  1. Which of the following is the law enforcement agency under the Ministry of Finance, Government of India, responsible for enforcing the provisions of the FEMA and other laws relating to foreign exchange?
    • The Directorate of Enforcement (ED).
    • The Reserve Bank of India (RBI).
    • The Securities and Exchange Board of India (SEBI).
    • The Central Bureau of Investigation (CBI).

The answer is (a). The Directorate of Enforcement (ED) is the law enforcement agency under the Ministry of Finance, Government of India, responsible for enforcing the provisions of the FEMA and other laws relating to foreign exchange.

  1. What are the powers of the ED?
    • To investigate violations of the FEMA.
    • To seize assets that are proceeds of crime or are used to commit a crime.
    • To prosecute persons who have violated the FEMA.
    • All of the above.

The answer is (d). All of the above are powers of the ED.

  1. Which of the following is a specialized unit of the ED?
    • The Foreign Exchange Control Unit (FECU).
    • The Economic Offences Wing (EOW).
    • The Asset Management Unit (AMU).
    • All of the above.

The answer is (d). All of the above are specialized units of the ED.