Introduction: The Institute of Company Secretaries of India (ICSI) has introduced registration requirements on its PMLA Portal to ensure compliance with Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) guidelines. This article provides detailed insights into these registration obligations and the process for company secretaries in practice.
Detailed Analysis:
1. Background: The Ministry of Finance has issued notifications under the Prevention of Money-laundering Act, 2002 (PMLA), requiring professionals, including company secretaries in practice, to adhere to certain obligations. These obligations encompass various financial transactions, such as managing client assets, organizing contributions for company operations, and dealing with immovable property transactions.
2. ICSI’s Role: As a statutory body, ICSI has developed a PMLA Portal to facilitate the registration of Reporting Entities, including company secretaries in practice, undertaking the specified financial transactions. The purpose is to ensure compliance with AML and CFT guidelines mandated by FIU-India.
3. Registration Process: Company secretaries holding a Certificate of Practice and engaging in the listed financial transactions are mandated to register themselves on the PMLA Portal. The registration process involves filling out details on the portal to identify existing Reporting Entities.
4. Nodal Officer: ICSI has appointed a nodal officer to facilitate communication with FIU-India and provide clarifications to Reporting Entities facing any issues. The nodal officer can be reached at pmla@icsi.edu for assistance and guidance.
Conclusion: The registration requirement on ICSI’s PMLA Portal underscores the institute’s commitment to upholding regulatory compliance and combating financial crimes. By ensuring that Reporting Entities, including company secretaries in practice, adhere to AML and CFT guidelines, ICSI contributes to fostering integrity and transparency within the profession. It is imperative for all eligible professionals to complete the registration process promptly to fulfill their regulatory obligations and uphold the highest standards of professional conduct.
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THE INSTITUTE OF
Company Secretaries of India
IN PURSUIT OF PROFESSIONAL EXCELLENCE
Statutory body under an Act of Parliament
(Under the jurisdiction of Ministry of Corporate Affairs)
April 09, 2024
Dear Professional Colleague,
REGISTRATION OF REPORTING ENTITY ON ICSI-PMLA PORTAL AS PER AML & CFT GUIDELINES
As you are aware, the notification of the Ministry of Finance pertaining to the Prevention of Money-laundering Act, 2002 (the Act) casts certain obligations on the reporting entity as defined under section 2(1)(wa) of this Act. The Ministry of Finance vide its notification dated May 03, 2023 has notified that the following financial transactions undertaken by professionals including company secretary in practice on behalf of his client during the course of his profession shall come under the purview of the Act:
(i) buying and selling of any immovable property;
(ii) managing of client money, securities or other assets;
(iii) management of bank, savings or securities accounts;
(iv) organisation of contributions for the creation, operation or management of companies;
(v) creation, operation or management of companies, limited liability partnerships or trusts, and buying and selling 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 dated May 03, 2023.
To guide the professionals in Practice, FIU-India has implemented AML & CFT Guidelines effective from June 19, 2023 [https://taxguru.in/chartered-accountant/aml-cft-guidelines-professionals-certificates-practice-icai-icsi-icmai.html]. The Guidelines apply to relevant persons carrying out financial transactions, such as, individuals who obtained Certificate of Practice under section 6 of the Chartered Accountants Act, 1949, under section 6 of the Company Secretaries Act, 1980 and under section 6 of the Cost and Works Accountants Act, 1959.
With a view to ensure compliance with the abovementioned Guidelines and to identify the existing Reporting Entities undertaking financial transactions as listed under the notification dated May 03, 2023, the ICSI, being Statutory Body, has developed a PMLA Portal.
All members holding a Certificate of Practice and falling within the definition of Reporting Entity under these guidelines are mandatorily required to register themselves by filling their details on the PMLA Portal at the link provided below:
https://stimulate.icsi.edu/
The process to register is shared below:
A nodal officer has also been appointed for communication with FIU-India and to provide clarifications in case of any issues being faced by Reporting Entities. The same may be reached at pmla@icsi.edu.
Regards
Team ICSI
