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The CA institute will soon recommend to its members that they adopt know-your-client (KYC) norms for all clients — both foreign and domestic, its President, Mr G. Ramaswamy, has said.
“For anti-money laundering purposes and also to ensure that terror funds are prevented, we will ask our members to maintain details of all clients. Before taking up a client, they will have to collect and keep records on details like PAN numbers, Director Identification Numbers, connections with foreign entities and holdings in entities abroad,” Mr Ramaswany told Business Line .
A practising chartered accountant will be urged to do KYC even for non-audit clients who may want services like taxation representation, consultancy, company formation, etc. Mr Ramaswamy said the Central Council of the Institute of Chartered Accountants of India (ICAI) gave its nod for its members to undertake KYC a few days ago.
“It will be recommendatory for our members,” he said, adding that the CA institute will soon finalise a two-page form for KYC purpose.
The Government had written to professional institutes like ICAI to devise mechanisms for its members to have KYC. This was being suggested from the perspective of addressing the menace of money-laundering and also from the point of view of tackling the issue of terror funds.
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