Aug 30, 2017

PMLA Rules Made Applicable to Gem & Jewellery Industry, DGGSTI to be Regulatory Body

In a notification issued last week, the government has announced that the provisions of the Prevention of Money-laundering Act (PMLA), 2002 will now also apply to all members of the gem and jewellery industry having an annual turnover of Rs 2 crore or more in a financial year.

All dealers of precious metals, precious stones, and other high-value goods with a turnover of Rs 2 crore or more in the previous financial year will be covered by the Act from the following financial year, the notification said.

The PMLA rules make it mandatory for every business entity coming under its ambit to maintain records of all transactions valued at above Rs 10 lakh, as well as of cross border wire transfers and purchase and sale of immovable property above specified amounts. Companies have to perform due diligence with respect to such transactions to prevent any money laundering or terrorist financing activity.

In a related announcement, the government has appointed the Directorate General of Goods and Services Tax Intelligence (DGGSTI) to act as a regulator for the industry under the Act.