The Government of India on 3rd May issued a notification bringing accounting professionals, including Chartered Accountants, Company Secretaries and Cost and Works Accountants, under the ambit of the Prevention of Money Laundering Act (PMLA) if they execute certain financial transactions on behalf of their clients.
Key points
- The new notification defines these professionals as ‘relevant persons’, who are found handling and conducting these transactions on behalf of their clients as partners in the crime of money laundering under PMLA.
- This definition shifts the onus of protecting one’s innocence on oneself as against the norm that one is assumed to be innocent unless proven guilty.
- The ‘worrisome’ financial transactions mentioned in the notification Include: 1. Buying and selling of any immovable property; 2. Managing of client money, securities or other assets; 3. Management of bank, savings or securities accounts; 4. Organisation of contributions for the creation, operation or management of companies; 5. Creation, operation or management of companies, limited liability partnerships or trusts, and buying and selling of business entities.
