Which one of the following is not correct in respect of Directorate of

Which one of the following is not correct in respect of Directorate of Enforcement ?

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It is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance.

It enforces the Foreign Exchange Management Act, 1999.

It enforces the Prevention of Money Laundering Act, 2002.

It enforces the Prohibition of Benami Property Transaction Act, 1988.

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC CDS-2 – 2021

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The Directorate of Enforcement (ED) is primarily responsible for enforcing two key financial laws: the Foreign Exchange Management Act, 1999 (FEMA) and the Prevention of Money Laundering Act, 2002 (PMLA). While ED may investigate assets suspected to be ‘benami’ if they are linked to money laundering under PMLA, the direct enforcement of the Prohibition of Benami Property Transaction Act, 1988 (now amended and renamed) falls under the purview of the Income Tax Department and specific Benami Prohibition Units. Therefore, the statement that ED enforces the Prohibition of Benami Property Transaction Act, 1988, is not correct as its primary enforcement lies with other authorities.

– ED operates under the Department of Revenue, Ministry of Finance.
– It is a specialized financial investigation agency.
– Its main mandate is to investigate violations of FEMA and offences under PMLA.

– The Prohibition of Benami Property Transaction Act, 1988 was significantly amended in 2016 and renamed as the Benami Transactions (Prohibition) Amendment Act, 2016.
– The Income Tax Department’s Benami Prohibition Units are the primary agencies tasked with enforcing the Benami Act.

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