Anti-Money Laundering News and Information

India: Gem dealers to maintain records of cash transactions worth about 13,500 USD

India: Gem dealers to maintain records of cash transactions worth Rs 10 lakh (about 13,500 USD)

Move aims to plug the loophole wherein cash transactions up to Rs 2 lakh without KYC were allowed in the gems and jewellery sector

Dealers of precious metals and stones will henceforth have to maintain records of cash transactions worth Rs 10 lakh or more cumulatively with a single customer.

The finance ministry has notified such dealers in precious metals and stones and also real estate agents with over Rs 20 lakh turnover under the ambit of Prevention of Money Laundering Act (PMLA).

Nangia & Co LLP director Mayank Arora said the amendment notifying dealers in precious metals and stones aims to plug the loophole wherein cash transactions up to Rs 2 lakh without KYC — PAN and Aadhaar —  were allowed in the gems and jewellery sector.

“This amendment classifies such dealers as reporting entities and such dealers would have to maintain records of all cash transactions cumulatively in excess of Rs 10 lakh with a customer,” Arora said.

He said real estate agents are considered as a reporting entity under the PMLA, 2002.

“Recent amendment to the Prevention of Money Laundering Rules, 2005 has appointed the Central Board of Indirect Taxes and Customs as the Regulator, responsible for specifying procedure and manner of maintaining records by real estate agents,” Arora added.

.

January 1, 2021, Published on the TELEGRAPH

 

Share on linkedin
Share on facebook
Share on twitter
Share on whatsapp
Share on email
Recent Posts