ICMAI Issues Revised KYC Guidelines for PCMAs, Mandating Client Verification Before Accepting Assignments

The Institute of Cost Accountants of India (ICMAI) has issued revised Know Your Client (KYC) Guidelines for Practicing Cost and Management Accountants (PCMAs). These new guidelines, approved in the 358th Council meeting, are now mandatory and align with government rules under the Prevention of Money Laundering Act (PMLA), 2002.

The revision classifies CMAs, along with CAs and CSs, as “reporting entities” when conducting certain financial transactions on behalf of clients. As a result, PCMAs must now verify client identities and conduct due diligence before accepting any assignment.

Key highlights from the Guidelines include:

• Mandatory collection of client documents like PAN, Aadhaar, financial records, and legal details.
• Different KYC formats for individuals and entities.
• Obligation to retain KYC records for five years post-assignment.
• Emphasis on preventing money laundering and terrorist financing.These guidelines aim to enhance transparency, accountability, and legal compliance in professional practices.

Click Here To Read The Full Story