Page 52 - Quick Insights Book 2022

Chap. 11 – Prevention of Money Laundering Act

to prevent the offence of money laundering by imposing a tax (d) By Filing monthly compliances under PMLA
on undisclosed foreign income and assets on Indian residents.
D. Advisory services
This has been further augmented by the enactment of the Black
Money (Undisclosed Foreign Income and Assets) and Imposition (a) By identifying the risk & mitigating controls in the
of Tax Act, 2015. customer area of acceptance, retail, banking and
sales channel management.
Professional opportunities in this area include: E. General role
A. As Consultants (a) Special reviews inspections and investigations
arising from Suspicious Transaction Reporting.
(a) By their vast expertise in handling huge quantitative
data for verification of the exact nature of (b) As Compliance advisors: As the first response to
transactions. legal authority is very important so by interpreting
various provisions of law and procedures and
(b) Developing data marts to track and monitor deviant
patterns and analyzing customer behaviour pattern. drafting documents.
(c) Functional Consultants as implementers of AML
(c) By building effective Anti-Money Laundering (AML)
programs for the financial organisations to protect systems.
them from the potential threats. F. Other opportunities to CAs under PMLA
(d) By appearing before regulators& adjudicating (a) CAs having specialized qualifications as may be
authorities. prescribed and having experience in the field of
finance and accounts, can be appointed as a
B. As the Trusted Partner of the Government
members of the Adjudicating Authority constituted
(a) By implementation of the Act in letter and spirit. The u/s. 6 of the PMLA.
implementation assistance could be in the form of (b) A CA can be an “authorised representative” [as
developing AML Policy and Control architecture.
defied under section 288(2) of the Income-tax Act,
(b) By Know Your Customer (KYC)/PMLA, 2002 1961] and can appear on behalf of its client in
Investigations and Inspections. respect of an appeal preferred before the Appellate
Tribunal section 39 of PMLA.
C. Conducting KYC Audit
G. Audit under PMLA Act, 2002
(a) By using customers due diligence procedures to
confirm the identity of clients from the records Section 13(1A) of the PMLA Act, 2002 confers the power
produced by him. to the Director to ensure compliance. The director can
direct the concerned reporting entity to get its records
(b) By systems audit for checking customer’s identity audited by a chartered accountant from amongst a panel
from external database. of accountants, maintained by the Central Government
(c) By formulating and implementing the programme for this purpose. All expenses of audit under said sub-
of KYC and forwarding it to the Director appointed section (1A) shall be borne by the Central Government.”
under PMLA as required under the PML
(maintenance of records) Rules 2005.

Courses offered
• The Committee on Economic, Commercial Laws & WTO is offering a Certificate Course on Anti Money Laundering Laws
for details, please visit https://www.icai.org/post.html?post_id=11740

Quick Insights on Professional Opportunities for Chartered Accountants 39