Placement, Layering and Integration — Legal Reforms

Entry	Year	Description	Impact
PMLA (Amendment) Act, 2012	2012	This amendment significantly expanded the scope of PMLA by introducing the concept of 'reporting entities' to include a wider range of financial intermediaries, real estate agents, and casinos. It also made money laundering a standalone offence, independent of the scheduled offence, and introduced the concept of 'corresponding law' for international cooperation.	The 2012 amendment broadened the net for detection at the placement and layering stages by bringing more entities under reporting obligations. Making money laundering a standalone offence strengthened the ability to prosecute even if the predicate offence was difficult to prove, provided proceeds of crime were established. This was crucial for tackling sophisticated layering and integration schemes.
Finance (No. 2) Act, 2019	2019	This amendment further strengthened the PMLA by clarifying that the offence of money laundering is a continuing offence, and that the definition of 'proceeds of crime' includes property derived or obtained even indirectly as a result of criminal activity. It also empowered the ED to conduct search and seizure without a prior FIR in certain cases.	The 2019 amendment reinforced the PMLA's ability to target funds at all stages, particularly by clarifying that 'proceeds of crime' covers indirect derivations, which is vital for complex layering and integration. The provision for search and seizure without FIR in specific circumstances aimed to expedite investigations and prevent the dissipation of assets, especially those acquired during the integration stage.