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Multi State Cooperative Societies may soon come under money laundering act - Paapaya

Multi State Cooperative Societies may soon come under money laundering act




(MSCS) may soon come under the purview of the Earlier this month, the Union government asked to furnish details of their turnover as a step towards bringing them under the fold of Prevention of (PMLA). The societies have been given time till 31st January to submit the details. Recently in a circular to The National Federation of Urban Cooperative Banks and Credit Societies (NAFCUB), the Ministry of Agriculture and Farmers Welfare said, “ as the matter regarding bringing MSCSs under the definition of reporting entities under the prevention of Money Laundering Act, 2002 is under consideration, in the Department of Revenue, Ministry of Finance, Government of India, therefore the details of the turnover of all the under various turnover slabs is required to be provided by this department to them.” NAFCUB is the apex promotional body of Urban Cooperative Banks (UCBs) and Credit Societies. There are about 1267 MSCSs operating in the country, with about 500 being credit societies. The second and third highest number of being in Agro and Housing sectors respectively. During demonetization, several credit cooperative societies had come under fire for allegedly accepting unaccounted cash. This apart, with a spurt in low-cost housing schemes, there has been a proliferation in the number of housing societies. At present, there are about 137 housing societies registered with the government. Maharashtra has the highest number of registered MSCSs. Data Source: http://dac.gov.in/ “Last year, the standing committee of the ministry of finance had suggested all unregulated financial entities to be brought under They had also suggested that regulations for should be tightened.

The present circular is a step towards that,” Subhas Gupta Chief Executive of NAFCUB, told Business Standard.