Ahead of FATF review, Centre takes multiple measures to implement recommendations

Ahead of India’s mutual evaluations by the Financial Action Task Force, the Union government has taken several measures to implement the intergovernmental body’s recommendations, made following the 2010 review, which includes notification of practising Chartered Accountants, Company Secretaries, and Cost and Management Accountants as reporting entities. “On May 3 this year, the Finance Ministry had issued a notification designating the three categories of finance professionals as ‘persons carrying on a designated business or profession’ under the Prevention of Money Laundering Act. The law provides that a ‘reporting entity’ means a banking company, financial institution, intermediary, or a person carrying on a designated business or profession,” Ashish Chandra Singh, former Deputy Legal Advisor with the Enforcement Directorate and a practising lawyer, said. However, Sections 126 and 129 of the Evidence Act gives them the immunity of privileged communication with clients,” a government official said, adding that non-compliance by a reporting entity attracts monetary penalty not less than ₹10,000, which may extend to ₹1 lakh for each failure.