Placement, Layering and Integration — Mains Questions

Discuss the three stages of money laundering – Placement, Layering, and Integration – with suitable examples. Analyze how the Prevention of Money Laundering Act (PMLA), 2002, addresses these stages in the Indian context.

The rise of digital payments and cryptocurrencies has introduced new complexities and vulnerabilities in combating money laundering. Critically examine this statement in the context of Placement and Layering stages, suggesting measures to enhance detection and prevention.

Despite robust legal frameworks like PMLA, money laundering remains a significant challenge for India's internal security. Analyze the reasons for this persistence, focusing on the difficulties in disrupting the Layering and Integration stages, and suggest comprehensive solutions.