Money Laundering Process — Legal Reforms

Entry	Year	Description	Impact
PMLA (Amendment) Act, 2005	2005	Expanded the definition of 'reporting entity' to include stockbrokers, chit funds, and cooperative banks. Introduced the concept of 'beneficial owner' and strengthened KYC norms.	Broadened the scope of entities obligated to report suspicious transactions, enhancing the financial intelligence network and making it harder for criminals to use non-banking financial channels for laundering.
PMLA (Amendment) Act, 2009	2009	Introduced the concept of 'corresponding law' to facilitate international cooperation and expanded the list of scheduled offenses.	Strengthened India's ability to cooperate with foreign jurisdictions in money laundering investigations and brought more predicate offenses under the ambit of PMLA, making the law more comprehensive.
PMLA (Amendment) Act, 2012	2012	Made money laundering a standalone offense, removed the threshold for predicate offenses, and introduced the concept of 'interim attachment'. Enhanced powers of arrest and search.	Significantly strengthened the PMLA by making money laundering an independent crime, irrespective of the conviction for the predicate offense. This provided more teeth to enforcement agencies and streamlined the process of attachment and confiscation.
Finance (No. 2) Act, 2019	2019	Amended Section 3 to clarify that the offense of money laundering is a continuing offense. Also, amended Section 45 to clarify that the twin conditions for bail apply to all offenses under PMLA.	Further solidified the legal position on the continuous nature of the money laundering offense and reinforced the stringent bail conditions, making it more challenging for accused persons to obtain bail, especially in complex cases.