Anti-money laundering regulation tweaked, lens on transactions by chartered accountants

Shopping for new property, establishing an organization and monetary transactions executed by chartered accountants, firm secretaries, and works accountants on behalf of purchasers will now be coated underneath the anti-money laundering regulation.

The finance ministry has notified modifications to the Prevention of Cash Laundering Act (PMLA), 2002, widening its lens to incorporate a number of transactions facilitated by professionals.

They would wish to look at the possession and monetary place, together with purchasers’ sources of funds, and report the aim of the required transaction. They are going to be liable underneath the PMLA in the event that they facilitate a transaction that violates the regulation.

The modifications have been made within the sub-clause (vi) of clause (sa) of sub-section (1) of Part 2 of the PMLA, which defines ‘related individuals’ and corporations coated underneath the anti-money laundering regulation. Earlier, the act didn’t embody these professionals. Now, chartered accountants, firm secretaries and price and works accountants have change into ‘reporting entities’, in accordance with a report by The Financial Instances.

The professionals will now be chargeable for actions on behalf of purchasers corresponding to shopping for and promoting of any immovable property, managing property, creation, operation or administration of corporations, restricted legal responsibility partnerships or trusts, and shopping for and promoting of enterprise entities.

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