Fema a Civil Law, RBI Alone Can Compound Offences, Says ED The Enforcement Directorate (ED) has clarified its role in handling Foreign Exchange Management Act (Fema) cases, shedding light on the complex web of responsibilities between the ED, Reserve Bank of India (RBI), and companies they regulate.
A Civil Law with Teeth Fema is a civil legislation designed to facilitate voluntary compliance and reduce litigation. However, its effectiveness depends on the willingness of regulatory bodies like RBI to use it.
In cases where serious crimes like money laundering or terror financing are involved, the ED takes over from compounding to investigation. But what about gray areas where companies unknowingly contravene Fema?