New Delhi, Sept. 16 -- The Enforcement Directorate (ED) has framed a protocol to reconcile the conflicting goals of the anti-money laundering law and the Insolvency and Bankruptcy Code (IBC), seeking to bring clarity for investors in distressed companies, homebuyers and banks, two people aware of the matter said.

The conflicting goals of the Prevention of Money Laundering Act (PMLA), a statute to check illicit financial flows and proceeds of crime, and the IBC, a commercial law for the timely resolution of financial distress in companies, have led to several litigations in the past, creating uncertainty for lenders and investors.

The issue has been particularly relevant in the real estate sector, which has traditionally been prone to mo...