Team Blitz India
NEW DELHI: Financial transactions made by chartered accountants, company secretaries and cost and works accounts on behalf of their clients will now come under India’s law to prevent money laundering.
The Finance Ministry in a notification on May 4 said the relevant sections of the Prevention of Money Laundering Act, 2002, or PMLA, will apply to all client transactions done by any CA, CS and CWA.
The transactions done by these professionals that will come under the PMLA are buying and selling of any immovable property; managing a client’s money, securities or other assets; managing bank, savings or securities accounts; organising contributions to create, operate or manage companies; creating, operating and managing companies, limited liability partnerships or trusts, and buying and selling entities, the Finance Ministry said.
The move is likely to strengthen the fight against money laundering as finance professionals will have to do better due diligence while dealing with their clients.
Including CA, CS and CWA under the PMLA also works as a deterrence against misuse of their professional licence. The PMLA has been used in seizing assets of big economic offenders and fugitives.
