Directorate of Enforcement (ED)

Why in news?

• The Enforcement Directorate froze assets worth Rs 370 crore of cryptocurrency exchange Vauld.
• This comes just days after the financial probe agency froze assets of cryptocurrency exchange WazirX in connection with a money laundering probe.

About Directorate of Enforcement (ED):

• The Directorate of Enforcement (ED) is a law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India.
• It is part of the Department of Revenue, Ministry of Finance, Government of India.
• It is composed of officers from the Indian Revenue Service, Indian Corporate Law Service, Indian Police Service and the Indian Administrative Service.
• The prime objective of the Enforcement Directorate is the enforcement of two key Acts of the Government of India namely, the Foreign Exchange Management Act 1999 (FEMA) and the Prevention of Money Laundering Act 2002 (PMLA).

PRACTICE QUESTION:

Consider the following statements regarding ‘Enforcement directorate’:

1.It functions under Ministry of home affairs.

2. Prevention of money laundering is one of the areas under its ambit.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

              B

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