ED Full Form: What ED Stand for? Check ED History, Objectives and Functions

ED Full Form is the Enforcement Directorate. Established in 1956, ED is responsible for the enforcement of economic laws, preventing money laundering cases and investigating economic offences-related cases. It plays an important role in maintaining the stability and integrity of the country. This guide will walk you through the ED Full Form including its history, objectives, functions, hierarchy, and much more.

ED Full Form: What is the full form of ED?

ED full form is the Enforcement Directorate. It is a crucial economic intelligence agency operating under the Indian government's Ministry of Finance with its headquarters in New Delhi. Established on May 1, 1956, ED is the frontline defender of economic laws and safeguarding the country against financial crimes. The key function of ED is to enforce laws such as the Prevention of Money Laundering Act, 2002 (PMLA) and the Foreign Exchange Management Act, 1999 (FEMA). With this, they are also responsible for enforcing the Fugitive Economic Offenders Act, 2018 (FEOA). Read on to learn more about the full form of ED and all related details.

ED Full Form-History

• Along with the knowledge of ED Full form, one must also know its history for better understanding. The Enforcement Directorate (ED) was established on May 1, 1956, as an Enforcement Unit under the Department of Economic Affairs, Government of India. Its primary function was to tackle violations of exchange control regulations within the Foreign Exchange Regulation Act of 1947. 
• In 1957, the unit was officially designated as the "Enforcement Directorate", with the establishment of a new branch in Madras, now known as Chennai.
• The Prevention of Money Laundering Act (PMLA) was enacted in 2002, with the ED assuming enforcement duties from July 1, 2005. Subsequently, the ED was given the power to enforce the Fugitive Economic Offenders Act (FEOA) of 2018, effective April 21, 2018.

ED Full Form-Main Objectives

After knowing the ED full form, here are the key objectives of ED shared below for reference purposes.

• The main objective of ED is to enforce two important laws as  Prevention of Money Laundering Act, 2002 (PMLA) and the Foreign Exchange Management Act, 1999 (FEMA).
• Secondly, the implementation of the Fugitive Economic Offenders Act, 2018 (FEOA) also falls under the responsibility of ED.
• The agency is responsible for investigating and preventing money laundering cases, preventing violations of foreign exchange regulations, and seizing assets acquired through illegal ways. 

ED Full Form-Functions

Apart from knowing about ED, one must learn how it functions. Mentioned below are some of the functions of the Enforcement Directorate.

• Enforcement of Economic Laws: ED is responsible for implementing numerous economic laws and regulations in the country. It ensures that everyone including individuals and entities follows these laws, encouraging fair and lawful financial dealings.
• Prevent and control money laundering: This involves identifying the activities wherein illegal funds or assets are converted into legal assets through tricky financial dealings.
• Investigate and prosecute economic offenders: The ED is responsible for investigating and prosecuting individuals and organisations involved in economic crimes such as fraud, corruption, and black money.
• Enforce foreign exchange laws: This includes preventing illegal foreign exchange transactions and ensuring all the foreign exchange regulations are followed by regularly monitoring foreign exchange transactions.
• Attach properties/assets acquired through illegal activities: The ED has the power to seize assets obtained through illegal activities.

ED Full form-Hierarchy

ED recruits individuals as Assistant Enforcement Officers (AEOs). They eventually progress to higher posts based on their experience and seniority. The highest post in this hierarchy is the Director within the Enforcement Directorate. The organisational hierarchy of the Enforcement Directorate (ED) is shared below:

• Director (Highest)
• Special Director
• Joint Director
• Deputy Director
• Assistant Director
• Enforcement Officer
• Assistant Enforcement Officer (AEO) (Entry Level)
• Deputation Officers

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