ED to Prioritize FEMA Compliance in 2025 Amid Rising PMLA Actions

The Enforcement Directorate (ED) will prioritize Foreign Exchange Management Act (FEMA) violations in 2025, as stated by Director Rahul Navin. While ensuring compliance with RBI and government regulations, ED will simultaneously continue its robust approach to tackling money laundering, having registered significant improvements in enforcement activities from 2014 to 2024.

The Enforcement Directorate (ED) is set to turn its attention toward violations under the Foreign Exchange Management Act (FEMA) in 2025, according to a recent announcement by the agency's Director, Rahul Navin. Addressing the audience on the agency's foundation day, Navin emphasized that FEMA violations will be the primary focus this year.

Director Navin underscored the ED's role in enforcing FEMA to ensure adherence to rules established by the Central Government and the Reserve Bank of India (RBI). These regulations oversee cross-border financial activities, and Navin affirmed that the agency would conduct investigations, adjudications, and impose penalties where necessary to uphold these standards.

Highlighted violations include export-import fraud, foreign direct investment (FDI) regulation breaches, external borrowing misuse, land ownership infractions by non-residents, and unauthorized overseas fund transfers. Navin also mentioned encouraging defaulters to use the compounding of offenses route when appropriate, aiming for corrective measures rather than solely punitive actions to boost financial discipline.

In parallel, the ED has significantly ramped up its enforcement activities under the Prevention of Money Laundering Act (PMLA) from 2014 to 2024, registering over 5,113 cases and issuing provisional attachment orders worth Rs 30,036 crore. The Director expressed satisfaction with the increased enforcement activities and highlighted continued rigorous action against money laundering, with substantial increases in both the number and value of provisional attachments.

As of March 31, 2025, assets under provisional attachment have reached Rs 1,54,594 crore. The ED is focusing on unlocking these assets' economic potential and compensating victims via Non Conviction Based Confiscation and Restitution provisions, with Rs 15,261 crore restitution completed in 30 cases this financial year, with court approvals.

(With inputs from agencies.)