New Delhi: The central government has taken the initiative to make the rules stricter to keep an eye on the accountants. In a recent notification from the Finance Ministry, the scope of the Anti Money Laundering Act has been extended. Chartered Accountants (CA), Company Secretaries (CS), and Cost Accountants can now be held liable under the Prevention of Money Laundering Act (PMLA) for carrying out certain types of financial transactions on behalf of their clients.
In the notification of the Ministry of Finance, information was given to keep CA, CS, and cost accountants under the ambit of PMLA for 5 types of financial transactions. Accordingly, the management of bank accounts on behalf of their clients and the purchase and sale of their properties will be examined within the purview of the PMLA law.
Recently, the Ministry of Finance issued a notification
According to this notification issued on May 3, in addition to the purchase and sale of immovable property, management of money, securities, or other assets of customers, management of bank, savings, or securities account, management of contributions for the formation, operation, or management of companies. And financial transactions related to the purchase and sale of business units with the formation, operation, or management of companies, LLPs, or trusts have been kept under the ambit of PMLA.
Both the client and the chartered accountant are equally responsible
It has also been clarified in this notification that Chartered Accountants along with their clients themselves will also be equally liable for punishment and fine under the PMLA Act, 2002. According to sources, “If the provisions of the PMLA law are implemented, both the client and the chartered accountant will be equally responsible. If the chartered accountant feels that the money laundering provision has been violated in any transaction, then he can now inform the regulator about it.
Chartered accountants have become sources of transaction information
Chartered accountant body ICAI said in a statement that after this notification, chartered accountants have now become sources of information about certain types of transactions. But for this role, he will have to keep complete records of all the transactions, apart from keeping the KYC of the customers. ICAI said that it will conduct an awareness program for its members to adapt them to this change. The organization said, “ICAI will continue to work closely with the authorities and regulators so that these changes are implemented in the right perspective.”
The government is constantly working to make the PMLA provision stricter
The government is continuously working to make the PMLA provision stricter to curb black money. In March too, the Finance Ministry had made it mandatory for banks and financial institutions to keep details of financial transactions of politically connected people.
