Now, CAs, CS, cost accountants come under PMLA scanner

NEW DELHI: Chartered and cost accountants and company secretaries can now be hauled up under the anti-money laundering law for carrying out certain specified financial transactions on behalf of their clients.

According to a notification to this effect issued by the Finance Ministry on May 3, these transactions include buying and selling of any properties and management of bank accounts.

The other categories of transactions listed in the notification are managing client money, securities or other assets; organisation of contributions for the creation, operation or management of companies; and creation, operation or management of companies, limited liability partnerships or trusts, and buying and selling of business entities.

It was further observed that chartered accountants will be equally responsible in terms of penalty and prosecution under the Prevention of Money Laundering Act, 2002 (PMLA).

“The responsibility of the client and CA will be equal if the PMLA provisions are invoked. CAs can now report certain transaction to regulators if they feel that there is a violation of PMLA provision,” they added.

The Institute of Chartered Accountants of India (ICAI) in a statement said that the accountants have now become reporting entity for the purposes of these specified transactions.

“As a reporting entity they have to do KYC of all clients entering into above transactions and maintain record thereof,” ICAI said.