Foreign Exchange Management Act (FEMA) | Amendments

Why in news?
The Union government has not yet notified the amendments to the Foreign Exchange Management Act (FEMA) that were incorporated into the legislation after President Pranab Mukherjee’s assent in May.

Background:

• Until last year, the Enforcement Directorate was pursuing about 4,500 cases under the FEMA. 
• Sixteen cases are pending against Mr. Modi and other former office-bearers of BCCI-IPL. The probe in 15 of them was completed, and these cases are now at the adjudication stage.
• In March, the government proposed amendments to the FEMA and the Prevention of Money Laundering Act (PMLA). The Special Investigation Team on black money had also come up with similar suggestions.

The Provisions:

The new law gives teeth to FEMA on the lines of the Prevention of Money Laundering Act (PMLA), where the properties can be confiscated at the time of investigation.

Also, The Union government will give immunity from prosecution under FEMA, Prevention of Money Laundering Act (PMLA) and four other laws to persons declaring undisclosed foreign assets under the compliance window of the new Blackmoney Act.

[Source: The Hindu]