India: Jewellery sector hails exemption from money-laundering law

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The removal of gem and jewellery from the ambit of the Prevention of Money Laundering Act has come as a big relief for the sector which is reeling under the twin impact of demonetisation and GST.

Following the move, jewellers need not verify the identity of their clients by a KYC process for every transaction of ₹50,000 or more made through a single or multiple transactions.

The move will boost gold jewellery demand during the festival season — particularly in rural areas. In August, the Central government through a notification, directed dealers in precious metals, precious stones and other high-value goods having a turnover of ₹2 crore in a financial year to be notified as persons carrying on designated business and professions under the Prevention of Money Laundering Act, (PMLA) 2002.