FEM (COMPOUNDING PROCEEDINGS) AMENDMENT RULES, 2017 – AMENDMENT IN RULE 8

NOTIFICATION NO. GSR 151(E) [F.NO.K-11022/59/2012-AD.ED], DATED 20-2-2017

In exercise of the powers conferred by section 46 read with sub-section (iii) of section 15 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Central Government hereby makes the following rules further to amend the Foreign Exchange (Compounding Proceedings) Rules, 2000, namely:—

1. (1) These rules may be called the Foreign Exchange (Compounding Proceedings) Amendment Rules, 2017.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Foreign Exchange (Compounding Proceedings) Rules, 2000, in rule 8, in sub-rule (2), the following proviso shall be inserted, namely:—

“Provided that with respect to any proceeding initiated under rule 4, if the Enforcement Directorate is of the view that the said proceeding relates to a serious contravention suspected of money laundering, terror financing or affecting sovereignty and integrity of the nation, the Compounding Authority shall not proceed with the matter and shall remit the case to the appropriate Adjudicating Authority for adjudicating contravention under section 13”.