homefinance NewsJewellery industry now under PMLA ambit; documents mandatory for transactions above Rs 10 lakh
Jewellery industry now under PMLA ambit; documents mandatory for transactions above Rs 10 lakh
The jewellery industry including the transactions of gold, silver, diamonds and other precious stones have been bought under the Prevention of Money Laundering Act (PMLA) ambit, according to a Ministry of Finance order.
The jewellery industry including the transactions of gold, silver, diamonds and other precious stones have been bought under the Prevention of Money Laundering Act (PMLA) ambit, according to a Ministry of Finance order.
“In exercise of the powers conferred by Prevention of Money-laundering Act, 2002, the Central Government hereby notifies the dealers in precious metals, precious stones as persons carrying on designated businesses or professions – if they engage in any cash transactions with a customer equal to or above rupees ten lakhs, carried out in a single operation or in several operations that appear to be linked,” the order read.
As per the notification, documents should be kept for any jewellery transactions worth over Rs 10 lakh and should be produced before Enforcement Directorate (ED), when asked.
The ED will have the authority to conduct a detailed investigation if gold or money related to gold deals is seized without proper documents.
According to the Mathrubhumi report, if jewellery owners fail to produce documents, they can be awarded 3 to 7 years of imprisonment apart from attacking their properties.
"At present, 82.5 percent of the value of seized gold and money is paid to the government. As PMLA is enforced, they will have to face investigation," Mathrubhumi report read.
Meanwhile, the Ministry of Consumer Affairs, Food & Public Distribution has also notified that only hallmarked gold and silver jewelry will be sold in the country from June 2021.
A hallmark is an official mark struck on precious metals to certify the content of the noble metals like gold, silver, platinum. In simpler words, a hallmark lends credibility to the purity of the jewelry. Moreover, it obligates manufacturers to maintain the legal standards of fineness and purity.
Currently, in India, Gold and Silver come under the purview of Hallmarking.
The hallmarking process is carried out at the assaying and hallmarking centers present across the country and monitored by the Bureau of Indian Standards (BIS).
First Published: Jan 8, 2021 1:58 PM IST
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