Financial Intelligence Unit — Legal Reforms

Entry	Year	Description	Impact
PMLA (Amendment) Act, 2012	2012	This amendment significantly broadened the scope of PMLA. It formally established FIU-IND under Section 12A, expanded the definition of 'reporting entity' to include a wider range of financial intermediaries and professionals, and clarified the definition of 'money laundering' to cover activities connected with proceeds of crime. It also introduced the concept of 'corresponding law' for international cooperation.	The 2012 amendment provided a clear statutory basis for FIU-IND, enhancing its legal legitimacy and operational reach. It brought more entities under the AML/CFT net, increasing the volume and diversity of financial intelligence available to FIU-IND, thereby strengthening India's overall anti-money laundering framework.
PMLA (Amendment) Act, 2019	2019	This amendment further strengthened the PMLA by clarifying that the offense of money laundering is a 'standalone' offense, not necessarily dependent on a prior conviction for the predicate offense. It also expanded the definition of 'proceeds of crime' to include property derived or obtained directly or indirectly from criminal activity, or the value of such property, even if held outside India.	The 2019 amendment broadened the ambit of what could be investigated and attached under PMLA, giving FIU-IND a wider scope for intelligence gathering related to illicit assets. By making money laundering a standalone offense, it streamlined prosecution efforts, making it easier for enforcement agencies to act on FIU-IND's intelligence without waiting for predicate offense convictions.