Members are requested to provide inputs/suggestions for the “National Risk Assessment (NRA) Exercise by filling enclosed Questionnaire within 10 days from the date of the announcement.
Background of the Matter
FATF (Financial Action Task Force) has made series of “Recommendations” for combating money laundering and financing of terrorism. FATF conducts Mutual Evaluation of its Members and other countries from time to time. India is a member of FATF. India’s last Mutual Evaluation was conducted in the year 2010. India’s next Mutual Evaluation is expected to be conducted in the year 2018. An important part of preparation for FATF mutual evaluation is conduct of National Risk Assessment (NRA) where risk of various sectors of the economy like Banking, Insurance, Capital Markets, Designated Non- Financial Business and Profession (DNFBP) sectors are assessed.
The Department of Revenue, Ministry of Finance, Government of India has constituted the DNFBPs Team under the Chairmanship of Special Director in the Enforcement Directorate for National Risk Assessment (NRA) exercise to assess the risks of various sectors of economy to have the self Assessment done by various segments on the vulnerability of their operations to Money Laundering. ICAI is also a member in the DNFBPs Team for National Risk Assessment (NRA) Exercise.
The Document National Risk Assessment (NRA) – Designated Non Financial Business and Professions Vulnerability” Module 7 highlights the followings under the role of Accountants, auditors, tax advisors.
- Buying and selling of real estate;
- Managing of client money, securities or other assets
- Management of banks, savings or securities accounts
- Organization of contributions for the creation, operation or management of companies;
- Creation, operation or management of legal persons or arrangements and buying and selling of business entities
2 CPE Hours (Unstructured) would be given to the Members for this Exercise.