Tenure of CBI and ED

Why in news?

• President Ram Nath Kovind on 14^th November 2021 promulgated two ordinances that would allow the Centre to extend the tenures of the directors of the Central Bureau of Investigation and the Enforcement Directorate from two years to up to five years.

More about the news:

• The chiefs of the Central agencies currently have a fixed two-year tenure, but can now be given three annual extensions.

What is Enforcement Directorate (ED)?

• The Directorate General of Economic Enforcement (Enforcement Directorate) is a law enforcement and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India.
• It was formed with the purpose of handling exchange control law violations under the Foreign Exchange Regulation Act,1947.
• Enforcement Directorate (ED) is administered by the Department of Revenue under the Ministry of Finance.
• The ED has its headquarters in New Delhi and has many regional offices all over the country.

Functions of Enforcement Directorate

• The Directorate enforces two laws:
  • Foreign Exchange Management Act, 1999 (FEMA), a Civil Law having quasi-judicial powers, for investigating suspected contraventions of the Exchange Control Laws and Regulations with the powers to impose penalties on those adjudged guilty.
  • Prevention of Money Laundering Act, 2002 (PMLA), a Criminal Law, whereby the Officers are empowered to conduct enquiries to locate, provisionally attach/confiscate assets derived from acts of Schedules Offences besides arresting and prosecuting the Money Launderers.
• Other functions:
  • Processing cases of fugitive/s from India under Fugitive Economic Offenders Act, 2018.
  • Sponsor cases of preventive detention under Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974(COFEPOSA) in regard to contraventions of FEMA.

PRACTICE QUESTION

Enforcement Directorate is mandated to enforce which of the following laws?

1. Prevention of Money Laundering Act, 2002

2. Foreign Exchange Management Act, 1999

3. Foreign Contribution (Regulation) Act, 2010

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1,2 and 3

Answer