Question And Answer
Subject: PMLA vs CA/CS/CMA
Querist: BKS
Answered by:
Tags: , , ,
Date: May 16, 2023
Query asked by BKS

What are the specific instances where they can be covered ?

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Answer given by

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.

Disclaimer: This article is only for general information and is not intended to provide legal advice. Readers desiring legal advice should consult with an experienced professional to understand the current law and how it may apply to the facts of their case. Neither the author nor and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this article nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of

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