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Questions and Answers
What is the primary objective of the Prevention of Money Laundering Act (PMLA)?
What is the primary objective of the Prevention of Money Laundering Act (PMLA)?
- To prevent money laundering and confiscate property derived from it (correct)
- To enforce civil law in India
- To regulate foreign exchange transactions and payments
- To investigate and prosecute economic crimes
What type of law is FEMA?
What type of law is FEMA?
- Non-bailable law
- Criminal law
- Civil law (correct)
- Cognizable law
What is the primary function of the Enforcement Directorate (ED)?
What is the primary function of the Enforcement Directorate (ED)?
- To regulate foreign exchange transactions and payments under FEMA
- To investigate and prosecute money laundering cases under PMLA (correct)
- To enforce income tax laws in India
- To investigate economic crimes under various laws
What is money laundering?
What is money laundering?
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Where is the Enforcement Directorate (ED) headquartered?
Where is the Enforcement Directorate (ED) headquartered?
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What is the name of the case where ED attached assets worth ₹22,000 crores?
What is the name of the case where ED attached assets worth ₹22,000 crores?
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What is the name of the agency that ED works closely with to investigate economic crimes?
What is the name of the agency that ED works closely with to investigate economic crimes?
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What is the consequence of a FEMA violation?
What is the consequence of a FEMA violation?
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What is the amount of assets attached by ED in the Vijay Mallya Case?
What is the amount of assets attached by ED in the Vijay Mallya Case?
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What type of offences are those under PMLA?
What type of offences are those under PMLA?
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Study Notes
Enforcement Directorate (ED) in India
PMLA (Prevention of Money Laundering Act)
- Enacted in 2002 to prevent money laundering and to confiscate property derived from money laundering
- ED is the implementing agency for PMLA
- PMLA applies to all citizens and entities, including companies, firms, and societies
- Offences under PMLA are cognizable and non-bailable
FEMA (Foreign Exchange Management Act)
- Enacted in 1999 to regulate foreign exchange transactions and payments
- FEMA is a civil law, whereas PMLA is a criminal law
- ED is responsible for enforcing FEMA provisions related to foreign exchange violations
- FEMA violations can lead to penalties, fines, and even arrest
Money Laundering
- Concealing or disguising the source of illegal funds to make them appear legitimate
- ED investigates and prosecutes money laundering cases under PMLA
- Money laundering is a predicate offence to other crimes, such as drug trafficking, terrorism, and fraud
ED Organisation
- Headquartered in New Delhi, with regional offices and zonal offices across India
- ED is headed by a Director, who is responsible for policy and decision-making
- ED has various departments, including investigation, prosecution, and policy
- ED works closely with other law enforcement agencies, such as the Central Bureau of Investigation (CBI) and the Income Tax Department
Major Cases
- 2G Spectrum Scam: ED attached assets worth ₹22,000 crores in connection with the 2G spectrum scam
- Coal Block Allocation Scam: ED attached assets worth ₹186 crores in connection with the coal block allocation scam
- Vijay Mallya Case: ED attached assets worth ₹9,000 crores in connection with the Kingfisher Airlines fraud case
- Nirav Modi Case: ED attached assets worth ₹7,000 crores in connection with the Punjab National Bank fraud case
Enforcement Directorate (ED) in India
PMLA (Prevention of Money Laundering Act)
- Enacted in 2002 to prevent money laundering and confiscate property derived from it
- Applies to all citizens and entities, including companies, firms, and societies
- Offences under PMLA are cognizable and non-bailable
- ED is the implementing agency for PMLA
FEMA (Foreign Exchange Management Act)
- Enacted in 1999 to regulate foreign exchange transactions and payments
- A civil law, whereas PMLA is a criminal law
- ED enforces FEMA provisions related to foreign exchange violations
- FEMA violations can lead to penalties, fines, and even arrest
Money Laundering
- Concealing or disguising the source of illegal funds to make them appear legitimate
- A predicate offence to other crimes, such as drug trafficking, terrorism, and fraud
- ED investigates and prosecutes money laundering cases under PMLA
ED Organisation
- Headquartered in New Delhi with regional and zonal offices across India
- Headed by a Director, responsible for policy and decision-making
- Comprises various departments, including investigation, prosecution, and policy
- Collaborates with other law enforcement agencies, such as the Central Bureau of Investigation (CBI) and the Income Tax Department
Major Cases
2G Spectrum Scam
- ED attached assets worth ₹22,000 crores
Coal Block Allocation Scam
- ED attached assets worth ₹186 crores
Vijay Mallya Case
- ED attached assets worth ₹9,000 crores in connection with Kingfisher Airlines fraud case
Nirav Modi Case
- ED attached assets worth ₹7,000 crores in connection with Punjab National Bank fraud case
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