About ED

• Enforcement Directorate (ED) was constituted in 1956 for handling Exchange Control Laws violations under the Foreign Exchange Regulation Act (FERA). 
• The ED today is a multi-disciplinary organization mandated with investigation of the offence of money laundering and violations of foreign exchange laws. 
• Headquartered at New Delhi, the administrative control of the Directorate is with the Department of Revenue, Ministry of Finance.
• The ED director is appointed as per provisions of the Central Vigilance Commission Act, 2003. 
  • The Centre appoints the director on recommendation of a committee, with the Central Vigilance Commissioner as chairperson. 
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Statutory Functions

• The statutory functions of the Directorate include enforcement of following Acts:

1. The Prevention of Money Laundering Act, 2002 (PMLA): 

• It is a criminal law enacted to prevent money laundering and to provide for confiscation of property derived from, or involved in, money-laundering.
• ED has been given the responsibility to enforce the provisions of the PMLA.

2. The Foreign Exchange Management Act, 1999 (FEMA): 

• It is a civil law 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 investigation into suspected contraventions of foreign exchange laws and regulations, to adjudicate and impose penalties on those adjudged to have contravened the law.

3. The Fugitive Economic Offenders Act, 2018 (FEOA): 

• This law was enacted to deter economic offenders from evading the process of Indian law by remaining outside the jurisdiction of Indian courts. 
• It is a law whereby ED is mandated to attach the properties of the fugitive economic offenders who have escaped from India warranting arrest and provide for the confiscation of their properties to the Central Government.

4. Sponsoring agency under COFEPOSA: 

• The Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA) was enacted to provide for preventive detention in certain cases for the purposes of conservation and augmentation of foreign exchange and prevention of smuggling activities.
• Under COFEPOSA, ED is empowered to sponsor cases of preventive detention with regard to contraventions of FEMA.