Expanding the applicability of PMLA 2002 to practising Chartered Accountants, Company Secretaries and Cost & Works Accountants
The Ministry of Finance, India, has issued a notification under the Prevention of Money Laundering Act, 2002 to include the practicing Chartered Accountants, Company Secretaries and Cost & Works Accountants under the purview of the anti-money laundering regime.
The notification has been issued in the context of the definition of “persons carrying on designated business or profession” to include the persons conducting the financial transactions in relation to the following activities in the course of their profession and on behalf of the client:
- buying and selling of any immovable property
- managing of client’s money, securities or other assets
- management of bank, savings or securities accounts
- organisation of contributions for the creation, operation or management of companies
- creation, operation or management of companies, LLP or trusts
- buying and selling of business entities.
Now, if the practicing Chartered Accountant, Company Secretary or Cost and Works Accounts in India conduct any of the activities mentioned above, they would be considered as a person carrying out designated business or profession and would be required to comply with AML compliance requirements under PMLA, such as performing Client Due Diligence, appointing an AML Principal Officer, identifying and reporting of Suspicious Transactions to FIU-IND, etc.
