In a notification of the Ministry of Finance on May 3, the scope of the Anti Money Laundering Act has been extended. According to the PMLA notification issued by the Ministry of Finance, CA, CS, ICWA will come under the purview of the Prevention of Money Laundering Act (PMLA) if they do select financial deals for a client. The most important thing is that these professionals will come under the ambit of PMLA on forming, opening, running companies, limited liability partnerships or trusts.

Sale and purchase of immovable properties will come under PMLA

According to the notification, the PMLA law will also be applicable on the purchase and sale of immovable properties for the client, taking care of the client’s money, property and securities. Operations of bank and securities accounts, raising money for the functioning of companies will also come under the ambit of PMLA. However, in the amendment, lawyers have been kept out of it. The concern of chartered accountants, company secretaries and cost accountants who open companies for their clients has increased. These will now come under the purview of the Anti Money Laundering Act PMLA.

Government worried about shell companies

The government is worried about the increasing functioning of shell companies. The purpose of opening thousands of companies without any functioning is to convert black money into white. Due to the multilayering of ownership in such companies, the agencies have to struggle a lot to reach the real owner. In recent years, the role of such professionals had come to the fore in many cases in the action of the investigating agencies. After which the government has taken this step.

Correct information on financial status and ownership

CA, CS, ICWA must ascertain the correct financial status and ownership details of their clients before dealing with them. Like what is the source of the fund and is it reasonable or not. What is the purpose of the transaction. The Financial Intelligence Unit can also impose a penalty if it deliberately ignores a deal made with funds from an illegal source. Must maintain record of all transactions done for the client. Along with this, its reporting will also have to be done by the director of the Financial Intelligence Unit.

This is the concern of professionals

The concern of the professionals is that the record of proving the guilt of the agencies in the PMLA law has been very weak. In such a situation, the way can be difficult for them if they get caught in the affair of the investigating agencies. The argument is also that for all the three professionals, there is already an institution formed under the law passed by the Parliament. who supervises the work. In such a situation, why there was a need to bring it under the ambit of PMLA law.

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