An article from India

The government of India had asked the accountants,
cost accountants and company secretaries to directly
report to the home ministry cases of suspicious fund
movements in an out of companies, as it looks to crack
down on money laundering and terror funding
“If any suspicious fund movements come to the notice of
the professionals, details of it along with full particulars
of its clients should be reported within 24 hours,” said
a senior government official.

The move is aimed at sensitising professionals of
their responsibilities under Section 51A of the
Unlawful Activities (Prevention) Act, which aims at preventing
routing of terror funds through domestic firms.

The move assumes significance at a time when India Inc
passes through the annual audit season, which
involves professionals such as CAs and company
secretaries to audit the financials of companies
and vet their management affairs. The government
wants that the professionals act in a more responsible
manner to report cases of corporate malafides as soon
as they come to their notice, the official said.

India is preparing to join FATF, an inter-government body founded by the G-7 countries in 1989 for developing and promoting national and international policies to combat money laundering and terrorist financing. FATF is currently evaluating India’s preparedness for its membership, which will allow the country to gain access to real-time exchange of information on money laundering and terror financing.