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Governed and controlled from the RBI, Fema can be an act of regulation that manages the flow of forex in the united kingdom, consistently while using emerging frame work and policies of the World Trade Organization (WTO). One in the major concerns in the organization is usually to frame policies and regulations for prevention of Money Laundering Act along with other such illegal practices a part of Foreign Exchange Management. Enacted on 1st June, 2000, the Fema act can be a replacement to FERA or Foreign Exchange Regulation Act of 1973. The replacement was introduced because FERA didn't fit with post-liberalisation policies with the country, presuming that the person was guilty until and unless he/she proved himself/herself innocent. Where as the law of the country provides liberty of presuming you to be innocent unless he/she is proved guilty.
Headquartered in New Delhi, Foreign Exchange Management Act has five zonal offices in Delhi, Mumbai, Kolkata, Chennai and Jalandhar. The Delhi headquarter also referred to as Enforcement Directorate is headed by a Director, where as all the zonal office is headed by an independent Deputy Director. Further these zones are sub split up into 7 sub-zonal offices.
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