The Enforcement Directorate is India’s law enforcement and economic intelligence organization, in charge of implementing economic laws and combating economic crime. It is responsible for maintaining the economic well being of the country.
It is a division of the Ministry of Finance’s Department of Revenue. This department includes officers from the Indian Revenue Service, the Indian Police Service, the Indian Administrative Service and also the officers promoted from its own cadre.
The following are the major role of Enforcement Directorate
- Preventing money laundering activities
- Monitoring the foreign transactions
- Regulating the foreign exchange
- Managing the economic offenders
- Preventing smuggling of goods
Let us understand these roles in detail.
Roles of enforcement directorate
Preventing money laundering activities
One of the major role of the enforcement directorate is to prevent the money laundering activities. Laundering money for saving on tax is an illegal activity and the same is guarded as per The Prevention of Money Laundering Act, 2002.
The enforcement directorate has been tasked with enforcing the terms of the said act by conducting investigations to trace assets resulting from criminal proceeds, provisionally attaching the property, and ensuring prosecution of criminals and seizure of property by the Special Court.
Monitoring the foreign transactions
The enforcement directorate regulates the transactions that take place between two countries. This department ensures that there are no illegal activities taking place in these transactions.
The enforcement directorate also records proper accountability of these transactions, ensures that the parties involved, fulfill all the said norms and guidelines.
Regulating the foreign exchange
The enforcement directorate has been tasked with conducting investigations who are found responsible for violating of foreign exchange laws and regulations, as well as adjudicating and penalizing anyone found to have broken the law.
This department works in line with the The Foreign Exchange Management Act, 1999. This Act is designed to unify and alter laws relating to external commerce and payments, as well as to encourage the orderly development and preservation of India’s foreign exchange market.
Managing the economic offenders
Enforcement directorate also plays a vital role in offending the individuals / organizations that abuse the economic well being of the country. This department has the right to proceed with the criminal preceding against individuals / corporate found guilty as an economic offender.
Preventing smuggling of goods
The enforcement directorate also ensures that prevention of goods within the boundaries of the country. In order to import / export goods, the citizen needs to follow a set rules and regulations, pay the custom duties, taxes etc before settling good.
The department also proceeds with the criminal offenders who are found guilty to smuggle goods from one country to another.
The Acts protected by Enforcement Directorate
The following are the Acts that are enforced and protected by the Enforcement Directorate
- The Prevention of Money Laundering Act, 2002
- The Foreign Exchange Management Act, 1999
- The Fugitive Economic Offenders Act, 2018
- The Foreign Exchange Regulation Act, 1973
Enforcement Directorate plays an important role in governing the economic well being of the country. It ensures that the people of the country do not have to go through an economic set back due to the offenders and ensure a transparent transaction between parties.
Know more about the Enforcement Directorate by accessing their official website
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