The Institute of Company Secretaries of India (ICSI) has released a clarification regarding charging of professional fees and receiving money for client payments for Government or legal dues, stating that the same will not be considered as “Financial Transactions” for the purpose of PMLA.
The communication stated as follows: –
‘As you are aware, the Ministry of Finance vide its notification dated May 03, 2023 has notified the financial transactions carried out by professionals including Company Secretary in practice, on behalf of his client during the course of his profession, in relation to the activities listed below:
buying and setting of any immovable property;
managing of client money, securities or other assets;
management of bank, savings or securities accounts;
organization of contributions for the creation, operation or management of companies;
creation, operation or management of companies, limited liability partnerships or trusts, and buying and setting of business entities.
Company Secretaries in Practice if carrying out the above Financial Transactions would be
termed as ‘Reporting entity’ under section 2(1)(wa) and 2(1)(sa)(vi) read with notification of the Ministry of Finance dated May 03, 2023.”
The Communication from ICSI further stated that: –
It is hereby clarified that charging professional fees, receiving money from clients for Government or legal dues etc. would not be construed as Financial Transactions.
To guide the professionals in Practice, FIU•lndia has implemented the AML & CFT Guidelines
which are effective from June 19, 2023.
These Guidelines apply to such Reporting Entities.
As per the above mentioned Guidelines, thc ICSI is required to identify thc existing Reporting
Entities undertaking financial transactions as listed under the notification dated May 03,
2023.
In compliance of thc same, all the members holding Certificate of Practice and falling within the definition of ‘Reporting Entity’ under thc Act are requested to register themselves by kindly fitting their details in the form placed at the link below within seven (7) days:
https://forms.gle/gyMfn6mYxKqpihFC8
Further, members are advised not to enter into any transaction with organizations/Individuals, banned by the Government of India.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
