Rule 3 of PMLA (Maintenance of Records) Rule 2005 provides for maintenance of records of 7 types of transactions with threshold limit specified therein.
It follows only such transactions have to be reported by “Reporting Entities”
Recent notification has included reporting of certain transactions carried out by CAs on behalf of their client.
I presume CAs are required to report such specified transactions subject to threshold limit specified in Rule 3 above, that too only if transactions are done by cash and for & on behalf of “clients”.
View of experts are solicited
Chartered Accountants Must Report Specific Cash Transactions Under Rule 3 of PMLA (Maintenance of Records) 2005 A query was raised regarding the Prevention of Money Laundering Act (PMLA) and its requirement for reporting specific transactions. Rule 3 of the PMLA (Maintenance of Records) Rule 2005 specifies seven types of transactions that must be reported by reporting entities if they exceed a certain threshold. A recent notification mandates that Chartered Accountants (CAs) report certain transactions conducted on behalf of clients, specifically those involving cash and meeting the threshold criteria. An expert confirmed the accuracy of this interpretation, supporting the original understanding of the reporting requirements. (AI Summary)
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