Ahead of India’s mutual evaluations by the Financial Action Task Force (FATF), the Union government has taken several measures to implement the intergovernmental body’s recommendations, made following the 2010 review, which includes notification of practising Chartered Accountants, Company Secretaries, and Cost and Management Accountants as reporting entities.
The FATF carries out the review to determine whether its recommended measures to curb money laundering and terror financing have been taken by the member country and if they are effective. India’s on-site assessment is expected to be carried out in November.
“On May 3 this year, the Finance Ministry had issued a notification designating the three categories of finance professionals as ‘persons carrying on a designated business or profession’ under the Prevention of Money Laundering Act (PMLA). The law provides that a ‘reporting entity’ means a banking company, financial institution, intermediary, or a person carrying on a designated business or profession,” Ashish Chandra Singh, former Deputy Legal Advisor with the Enforcement Directorate (ED) and a practising lawyer, said.
