As per the changes notified in the the Prevention of Money-laundering Act (PMLA), such professionals will be liable to ascertain the correct financial status and ownership details of their clients before dealing with them
New Delhi:
The government on Thursday has brought practicing chartered accountants (CA), company secretaries (CS), and cost and works accountants (CWAs) carrying financial transactions on behalf of their clients, into the ambit of the money laundering law.
As per the changes notified in the the Prevention of Money-laundering Act (PMLA), such professionals will be liable to ascertain the correct financial status and ownership details of their clients before dealing with them.
The activities, the central Government has notified as part of the financial transactions carried out by a relevant person on behalf of his or her clients, are-
– buying and selling of any immovable property;
– managing of client money, securities or other assets;
-management of bank, savings or securities accounts;
– organisation of contributions for the creation, operation or management of companies;
– creation, operation or management of companies, limited liability partnerships or trusts, and buying and selling of business entities,
The Act also stipulates that in case a transaction by a client appears to be suspicious or involves the proceeds of a crime, the reporting entity will step up monitoring future business relations.
As per the changes notified, they must also maintain records of all deals done for their clients and they will be penalised if found to have dealt with funds from illegal sources.