| Question And Answer | |
|---|---|
| Subject: | PMLA vs CA/CS/CMA |
| Category: | General Law |
| Querist: | BKS |
| Answered by: | Advocate Aditya Ajgonkar |
| Tags: | CA, CMA, CS, PMLA |
| Date: | May 16, 2023 |
What are the specific instances where they can be covered ?
The PMLA has various aspects that need to be considered with respect to the proceedings contemplated. The three broad aspects are –
1. Attachment and confiscation of proceeds of crime
2. Criminal proceedings to punish the activity of money laundering
3. Compliance provisions regarding prevention of money laundering.
The Circular of 3rd May, 2023, that has made headlines brings CAs, CSs and CMAs into the compliance aspects of PMLA. When transactions that are specified under the circular are entered into by CAs in the course of their profession on behalf of the clients, certain reporting and maintenance of records provisions under the PMLA are triggered as per the circular. This is not to be confused with the attachment/confiscation proceedings and the criminal proceedings under the PMLA. The attachment/confiscation proceedings are only triggered when proceeds of crime are in the hands of persons (even if it is a Bonafide third party, such party shall have to demonstrate its Bonafide’s before the adjudicating authority) and the criminal offense is triggered when a person triggers the offense contemplated by Section 3 of the PMLA.
There is no one size fits all answer with regard to specific instances. Please seek professional help from an advocate or a PMLA professional with specifics of a case in order to obtain an accurate and specific answer.