With chartered accountants carrying out financial transactions for their clients brought under the ambit of the money laundering act, the Institute of Chartered Accountants of India said it had already prescribed standards for auditors and it would continue to work with the government to implement the changes.
“ICAI Council already has prescribed a KYC requirement and standard on quality control which lay down quality standards for engagements,” it said in a statement. Further, the ICAI code of conduct and ethical standards for members also require auditors of certain class of companies to report on non-compliance with laws and regulations.
Also read: Headstrong: 5 first-generation politicians who made their mark in Karnataka
Set up by an act of Parliament, the ICAI regulates the profession of chartered accountancy in the country.
“ICAI will conduct awareness programme for its members in relation to such financial transactions which are already prohibited on behalf of one’s client, in the course of his or her profession,” it said, adding that it will also continue to work with the authorities and other regulators so that these changes are implemented in the right perspective and role of professionals is understood.
The finance ministry on May 3 notified changes through which Chartered Accountants, Company Secretaries and Cost & Works Accountants carrying out financial transactions have now been designated as “relevant persons’ under the Prevention of Money Laundering Act, 2002.
Also read: Sharad Pawar withdraws resignation, to continue as NCP president
These transactions include buying and selling of any immovable property; managing of client money, securities or other assets; management of bank, savings or securities accounts; organisation of contributions for the creation, operation or management of companies and creation, operation or management of companies, limited liability partnerships or trusts, and buying and selling of business entities carried out by these professionals for their clients.
They have now become reporting entity for the purposes of these transactions. As a reporting entity they have to do KYC of all clients entering into above transactions and to maintain record thereof.