Govt. brings directors, nominee shareholders, formation agent of Companies/ LLPs under the purview of the PMLA Act

The Department of Revenue, Ministry of Finance, has released a Notification vide F. No. P-12011/10/2023-ES Cell-DOR dated 9th May, 2023 which amends the definition of “person carrying on designated business or profession” under section 2(1)(sa) of the Prevention of Money-laundering Act, 2002 (PMLA Act).

According to the Notification, directors of a company, trustees of an express trust, and nominee shareholders of a company will now be considered reporting entities under the PMLA Act for specific activities carried out during the course of their business. These activities include acting as a formation agent of companies and LLPs, serving as a director or secretary, acting as a nominee shareholder, and more.