Red Flag Indicators, issued by FIU-IND w.r.t. Notification dated 3rd May 2023 under the Prevention of Money Laundering Act, 2002, hosted on ICAI website
Dear Member,
This is in continuation of the email dated 11th October 2023 and 16th October 2023 w.r.t. Notification under the Prevention of Money Laundering Act, 2002.
In this regard, we would like to reiterate here that in the exercise of the powers conferred by sub-clause (vi) of clause (a) of sub-section (1) of section 2 of the Prevention of Money-laundering Act, 2002, the Central Government, vide notification F. No. P-12011/12/2022-ES Cell-DOR dated May 03, 2023, notified certain financial transactions carried out by relevant persons, such as individuals who obtained a certificate of practice under the Chartered Accountants Act, 1949, the Company Secretaries Act, 1980, and the Cost Accountants Act, 1959, extracts of the same is given below:
… The Central Government hereby notifies that the financial transactions carried out by a relevant person on behalf of his client, in the course of his or her profession, about the following activities-
(i) buying and selling of any immovable property;
(ii) managing client money, securities, or other assets;
(iii) management of bank, savings or securities accounts;
(iv) organization of contributions for the creation, operation, or management of companies;
(v) creation, operation, or management of companies, limited liability partnerships or trusts, and buying and selling of business entities,
shall be an activity for said sub-section…
The aforesaid notification, guidelines issued in this regard by FIU-IND, along with other relevant information, is hosted on the ICAI Portal at https://www.icai.org/post/aml-
We would like to mention here that a compilation of Frequently Asked Questions (FAQs) on 3rd May, 23 Notification is made available on ICAI portal, intended to facilitate a comprehensive understanding of the notification, readily accessible at https://resource.cdn.icai.org/
Furthermore, the FIU-IND has issued “Red Flag Indicators”, which are helpful for CA reporting entities i.e. Members in practice carrying notified activities. The Red Flag Indicators are CONFIDENTIAL and hence are available in SSP login of the Members in practice.
It is advised to kindly go through them and ensure compliance only in case you are a Reporting Entity while performing professional work i.e. carrying out notified activities on behalf of your clients.
If you have any queries or need further information, please don’t hesitate to contact us at cclea.aml@icai.in. We are here to assist you.
Regards,
| Chairman | Vice-Chairman |
Committee on Commercial Laws, Economic Advisory & NPO Cooperative
The Institute of Chartered Accountants of India
Secretariat:
Committee on Commercial Laws, Economic Advisory & NPO Cooperative of ICAI,
ICAI BHAWAN’, A-29, Sector 62, Noida 201309
Desk- 0120-3876889, 0120-3045926