What is the procedure for compounding of contraventions under Foreign Exchange Management Act, 1999 ?

Answer 3A(iv) Central Government has notified the Foreign Exchange (Compounding Proceedings) Rules 2000 for the purpose of compounding of offences under section 15 of the Foreign Exchange Management Act, 1999. It contains the detailed guidelines and procedure for compounding of offences under Foreign Exchange Management Act, 1999. The broader process prescribed for compounding of offences under FEMA is as follows: Application is to be made to the appropriate compounding authority as per format given in the Foreign Exchange (Compounding Proceedings) Rules, 2000. Every application for compounding any contravention under this rule shall be made in Form to the along with a fee of ₹ 5000/- by Demand Draft in favour of compounding authority. The Compounding Authority may call for any information, record or any other documents relevant to the compounding proceedings. For the purpose of adjudging the quantum of amount on payment of which the the contravention shall be compounded, compounding fee, the Compounding Authority shall consider the guidance note provided for the purpose in the amended Rules. The Compounding Authority shall pass an order of compounding after affording an opportunity of being heard to all the concerned as expeditiously as possible and not later than 180 days from the date of application. If the Enforcement Directorate is of the view that the proceeding initiated before it 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 of FEMA. Further, the cases attracting the provisions under section 3(a) or those attracting special provisions under section 37(A) of the FEMA, 1999 relating to assets held outside India in contravention of section 4, shall also not be eligible for compounding by the Reserve Bank.