The Government of India has brought chartered accountants, company secretaries and cost and works accountants under the stringent Prevention of Money Laundering Act (PMLA) for five specified financial transactions undertaken on behalf of the clients. The Union Finance Ministry issued a notification to this effect on May 3.
The notification specified five categories of financial transactions buying and selling of immovable property; managing of client money, securities or other assets; management of bank, savings or securities accounts; organisation of contributions for the creation, operation or management of companies; and creation, operation or management of companies, limited liability partnerships or trusts, and buying and selling of business entities.
The Institute of Chartered Accountants of India (ICAI) said that chartered accountants have now become reporting entities for the specified transactions under the anti-money laundering act and that “as a reporting entity they have to do KYC of all clients entering into above transactions and maintain record thereof.”
Furthermore, the ICAI said that it would conduct awareness programme for its members concerning such financial transactions which are prohibited on behalf of one’s clients, in course of their professions. The ICAI said, “ICAI will also continue to work with the authorities and other regulators so that these changes are implemented in the right perspective and role of professionals is understood.”
The Government of India has been tightening the PMLA provisions to keep a check on black money. On March 7, the Government of India issued a notification bringing crypto asset transactions under the anti-money laundering law.
The notification specified the nature of transactions to be covered under PMLA as exchange between virtual digital assets and fiat currencies, exchange between one or more forms of virtual digital assets, transfer of virtual digital assets, safekeeping or administration of virtual digital assets or instruments enabling control over virtual digital assets, participation in and provision of financial services related to an issuer’s offer and sale of a virtual digital asset.