Legal Framework — Legal Reforms

Entry	Year	Description	Impact
PMLA (Amendment) Act, 2012	2012	This amendment significantly broadened the scope of PMLA. It introduced the concept of 'corresponding law' for foreign jurisdictions, making money laundering a standalone offence (not requiring conviction for predicate offence), expanded 'proceeds of crime' to include property equivalent in value, and established the Appellate Tribunal and Adjudicating Authority more firmly.	Decoupled the money laundering offence from predicate offence conviction, enhancing ED's ability to act swiftly. Expanded the reach of the Act to cover more complex financial structures and international dimensions, aligning with FATF recommendations.
Finance (No. 2) Act, 2019	2019	These amendments further strengthened the PMLA, particularly concerning the definition of money laundering, the burden of proof, and the powers of the ED. It clarified that involvement in 'any process or activity' connected with proceeds of crime is sufficient, and the presumption of guilt applies at all stages. It also expanded the definition of 'proceeds of crime' to include property equivalent in value.	Made the PMLA even more potent by clarifying ambiguities and broadening its scope, especially regarding the independent nature of the money laundering offence and the application of the reverse burden of proof. These amendments were largely upheld by the Supreme Court in 2022.