Financial Transactions Carried Out By CA, CS & CWA Now Covered Under PMLA

The Ministry of Finance has brought the financial transactions entered into by Chartered Accountants, Company Secretaries and Cost and Works Accountants on their clients’ behalf within the ambit of the Prevention of Money Laundering Act, 2002. The same has been notified in the exercise of powers conferred under Section 2(1)(sa)(vi) of the Act.

The gazette notification dated May 3, 2023, states that a CA, CS or CWA would be deemed to be a “person carrying on designated business or profession” if the transactions carried out by them pertain to activities specified in the notification such as purchasing or selling of any immovable property, handling client’s money, operating companies, LLPs or trusts, etc. Hence, they would be required to fulfil the obligations imposed upon reporting entities as per the provisions of the Act.

This move was perceived to be necessary in light of the involvement of professionals in money laundering schemes.