Reporting Entity under Prevention of Money Laundering Act, 2002 (PMLA)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ved in money-laundering and to punish those who commit the offence. Defination of Money Laundering Means any act of acquiring untainted property or disguising financial assets • According to Section 3 Read with rule 2 of Prevention of Money Laundering Act - "whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming it as untainted property shall be guilty of offence of money Laundering. * Money laundering involves disguising financial assets so that they can be used without detection of the illegal activity that produc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....A, 2002 Accordingly, clause (wa) to section 2(1) read as:- (wa) "reporting entity" means a banking company, financial institution, intermediary or a person carrying on a designated business or profession; Thus, as per clause (wa) the following persons are made reporting entity under PMLA * * a banking company (see clause (e)) * a financial institution (see clause (i)) * an intermediary (see clause (n)) * a person carrying on a designated business or profession (see clause (sa) hereinbelow:) Simultaneously, clause (sa) inserted to section 2(1) to define the scope and meaning of "person carrying on designated business or profession" introduced as: (sa) "person carrying on designated business or profession&....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....15 (Issued u/s 2(1)(sa)(vi)) * * any person, licensed by the Insurance Regulatory and Development Authority * to perform the functions as specified in regulation 3 or regulation 4 or regulation 5 of the Insurance Regulatory and Development Authority (Insurance Brokers) Regulations, 2002, * shall be deemed to be a "person carrying on designated business or profession" 3. Notification no. 3/2015 dated 17-4-2015 (Issued u/s 2(1)(sa)(ii)) * * a Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908 (16 of 1908) * as a "person carrying on designated business or profession". 4. Notification no. 4/2017 dated 23-8-2017(Issued u/s 2(1)(sa)(iv)) From 23-8-2017 to 5-10-2017 * * d....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....arried out in a single operation or in several operations that appear to be linked. 8. Notification dated 28-12-2020 (Issued u/s 2(1)(sa)(iv)) From 28-12-2020 to 28-11-2022 * * the "Real Estate Agents", as a person * engaged in providing services in relation to sale or purchase of real estate and having annual turnover of Rupees twenty lakhs or above, * as "persons carrying on designated businesses or professions". This notification has been rescinded vide Notification dated 29-11-2022 9. Notification dated 29-11-2022 (Issued u/s 2(1)(sa)(iii)) From 29-11-2022 * * 'real estate agents' * as defined under clause (zm) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016) and as a person eng....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... by a relevant person on behalf of his client, in the course of his or her profession, in relation to the following activities- (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, shall be an activity for the purposes of said sub-section. Explanation 1.- For the purposes of this notification 'relevant person' includes - (i) an individual who obtained a certificate of practice under sect....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y or a limited liability partnership or a trust; (iv) acting as (or arranging for another person to act as) a trustee of an express trust or performing the equivalent function for another type of trust; and (v) acting as (or arranging for another person to act as) a nominee shareholder for another person. Explanation.-For removal of doubts, it is clarified that the following activities shall not be regarded as activity for the purposes of sub-clause (vi) of clause (sa) of sub-section (1) of section 2 of the Act, namely:- (a) any activity that is carried out as part of any agreement of lease, sub-lease, tenancy or any other agreement or arrangement for the use of land or building or any space and the consideration is subjected to ded....