The government subjects the directors, nominee shareholders, and formation agent of companies and LLPs to the PMLA

Notification No. S.O. 2135(E), Dated 10.05.2023

A change to the definition of “person carrying on designated business or profession” under section 2(1)(sa) has been announced by the government. The government has added corporate directors, explicit trusts and trustees, and nominee shareholders to the list of reporting entities under the PMLA for certain business-related activities. Acting as a nominee shareholder, director, or formation agent for corporations and LLPs are a few examples of these actions.