The Finance Ministry has issued a notification. In this, the scope of the Anti-Money Laundering Act has been weakened. Now CA CS, ICWA if they do some financial deal for a client then they will come under PMLA law. Let us know about it in detail.
In a notification of the Ministry of Finance on 3 May, the scope of the Anti Money Laundering Act has been increased. As per the PMLA notification issued by the Finance Ministry, CAs, CS, ICWAs will come under the purview of the Prevention of Money Laundering Act (PMLA) if they select financial deals for a client. Most importantly, these professionals will come under the purview of the PMLA for 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 apply to the purchase and sale of immovable properties for the customer, taking care of the money, property and securities of the customer. Operation of bank and securities accounts, raising funds for the functioning of companies will also come under the ambit of PMLA. However, in the amendment, lawyers have been kept out of it. Chartered accountants, company secretaries and cost accountants who set up companies for their clients are worried. 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 functioning is to convert black money into white. Due to the multi-layered 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 about financial status and ownership
CA, CS, ICWA must ascertain the exact 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 fines if it willfully ignores dealings with funds from illegal sources. A record must be maintained of all transactions done for the customer. Along with this, its reporting will also have to be done by the Director of the Financial Intelligence Unit.
it concerns the professionals
What worries professionals is that the conviction record of agencies under the PMLA Act has been abysmal. 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 a body has already been constituted for all the three professionals under a law passed by the Parliament. who supervises the work. In such a situation, why was there a need to bring it under the ambit of PMLA law.
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