PMLA: The authorities has tightened its noose on chartered accountants, firm secretaries and value accountants who transact for his or her purchasers. Under the brand new rule, Chartered Accountants, Company Secretaries and Cost Accountants can now be held accountable underneath the PMLA (Prevention of Money Laundering Act) legislation on sure sorts of monetary transactions on behalf of their purchasers.

The Finance Ministry has issued a notification, in keeping with which it has been stated to maintain CA, CS and Cost Accountant underneath the ambit of PMLA for 5 sorts of monetary transactions. Accordingly, their function in managing financial institution accounts on behalf of their prospects and sale and buy of their properties can be examined throughout the ambit of the PMLA legislation.

Management of cash, securities or different property of shoppers apart from buy and sale of immovable property, administration of financial institution, financial savings or securities accounts, formation, operation or administration of corporations, supervision of contributions to corporations, LLPs or trusts, in keeping with the notification. Financial transactions associated to the acquisition and sale of enterprise models with the formation, operation or administration of corporations have been stored underneath the purview of the PMLA. According to this notification, Chartered Accountants together with their purchasers will themselves be equally chargeable for punishment and wonderful underneath the PMLA Act, 2002.

Both the consumer and the Chartered Accountant can be equally liable if the provisions of the PMLA Act are invoked. If a chartered accountant feels that the provisions of the PMLA (Prevention of Money Laundering Act) have been violated in any transaction, he can now inform the regulators about it.

ICAI, a physique of chartered accountants, stated in a press release that after this notification, chartered accountants have now change into a supply of data on sure sorts of transactions. But for this function, he must preserve full data of all of the transactions, other than conserving KYC of the shoppers.

The authorities is repeatedly working to make the PMLA provisions stricter to curb black cash. In March additionally, the Finance Ministry had made it obligatory for banks and monetary establishments to maintain particulars of monetary transactions of politically related individuals.

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