After the inception of the Special Police Establishment at the Centre and Anti-Corruption Establishment at the Provincial level, the Anti-Corruption Establishment West Pakistan was re-organized in June 1956. In order to provide procedural modalities, constitution, functions, duties and powers, the West Pakistan Anti-Corruption Ordinance, was promulgated in 1961. According to this ordinance the Director was designated to be the head of this Establishment in each province assisted by sufficient number of Assistant Directors Crimes/Legal and Technical Officers. The other codal formalities for prosecution of cases are governed by Criminal Law Amendment Act 1958. On the same pattern provincial ACE was established in N.W.F.P. in the year 1971.
During the year 1999 the Government of Khyber Pakhtunkhwa replaced the West Pakistan ACE Rules 1965 by Khyber Pakhtunkhwa Anti-Corruption Establishment Rules 1999 notified vide No.SOS-III(S&GAD)4(6)/98, dated 15.12.1999.
This Establishment performs its functions within the above mentioned legal framework.