FinMin brings CA, CS, accountants carrying financial transactions of clients under money laundering law

In a notification dated May 3, the Finance Ministry said that an activity will be recognised under the PMLA Act if these professionals carry out financial transactions on behalf of his/her client such as (buying and selling of any immovable property; managing 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. While the ambit has been widened, lawyers seem to have been kept out of this.

The changes have been made in the sub-clause (vi) of clause (sa) of sub-section (1) of section 2 of the PMLA, which defines different categories of persons covered under the money laundering law.

The amendments assume significance ahead of the proposed assessment of India under the Financial Action Task Force (FATF), which is expected to be undertaken later this year. The FATF is the global money laundering and terrorist financing watchdog. India’s possible onsite assessment is slated for November, while the assessment is likely to come up for discussion in the plenary discussion in June next year.