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The Indian government has expanded the scope of its money laundering law to also include individuals representing a company or acting as a director, according to a notification.

The amendment comes a week after the government brought in chartered accountants, company secretaries, and cost and work accountants under its fold, requiring them to maintain records of all financial transactions they undertake for clients.

The government, in a gazette notification dated May 9, has expanded the scope of the law to include all individuals helping in the formation of a company, including those acting as a director, secretary or proxy nominee director.

The law now also includes individuals who provide the company with an office or correspondence address or act as a trustee, the notification said.

"The scope (of the money laundering law) has been widened to include every person representing another person for certain activities," said Rajat Mohan, a partner at tax consultancy firm AMRG & Associates.

This will make the law stricter, he said.

The move is India's attempt to crackdown on black money and comes ahead of a regular assessment by the Financial Action Task Force later this year.

The FATF is a global money laundering and terrorism financing watchdog that will assess India's compliance with FATF's standards and identify areas of improvement.