Key Points
Chartered Accountants (CAs), Company Secretaries (CSs), and Cost and Management Accountants (CMAs) say that the finance ministry's Tuesday notification, which broadens the scope of Prevention of Money Laundering Act (PMLA) for professionals, is ambiguous and unclear on certain key terms and makes their work more complex, putting a strain on the resources of smaller firms while burdening them with disproportionate accountability...
The notification brings a range of consultants under the purview of the PMLA, including cases where the consultant's address is only provided for limited correspondence purposes, which is a common administrative practice among advisory firms to keep track of all communications with various regulators, according to experts...
Paras Savla of partner at CA firm KPB & Associates said that Post Supreme Court affirming the expanded scope of money laundering under the revised PMLA and considering Indias commitment to the Financial Action Task Forces (FAFT), in recent times Central Government exercised its power to further expand the scope of the PMLA..
A leading chartered said that basis the first reading of the notification it appears that the new regulations would trigger multiple new compliances for professionals as reporting entities such as monthly reports to FIU-IND, KYC of clients with the Central KY Registry, unless further guidance is issued otherwise from Government or the respective institutes to bring more clarity on any possible relaxations for the professionals..
These activities include agreements for leasing, renting, or using space where income tax is deducted wherever deductible, work done by employees for their employer, work done by advocates, accountants, and company secretaries for the formation of a company by giving the declaration under section 7 of Companies Act etc...
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