Under the Prevention of Money Laundering Act, 2022, it is stated by the Government that the following transactions done by chartered accountants, Company Secretaries and Cost And Works Accountancy (CWA) in the name of their client will be covered.
The Ministry of Finance, Department of Revenue in India issued the notice and it is under the Prevention of Money Laundering Act, 2002. The notification explains that some financial transactions performed by a respective person in the name of their client shall be taken into account under Sub-section (1) of section (2) of the Act.
The purchasing and selling of stable possessions, securities, or other assets, managing bank, savings, managing client funds, or securities accounts, contributions made by the organisation for the formation, operation, or management of corporations, limited liability of partnerships or trusts, and the buying and selling of business entities are all financial transactions that are explained in this notification.
Explanation 1 of this notification explains an applicable person one who is an individual who acquired a certificate of practice under Section 6 of the Chartered Accountants Act, 1949, an individual who acquired a certificate of practice under Section 6 of the Company Secretaries Act, 1980, and an individual who has acquired a certificate of practice under Section 6 of the Cost and Works Accountants Act, 1959, and who is practising either independently or through a firm.
The term “firm” is defined in Explanation 2 of the notification under sub-clause (i) of clause (23) of Section 2 of the Income-tax Act, 1961.
In conclusion, this notification defines the types of financial transactions that shall be understood as an activity under sub-section (1) of Section 2 of the Prevention of Money Laundering Act, 2002. Further, it defines the relevant persons and firms in this context.
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