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IBJA's PMLA clarifications to benefit jewellery, bullion trade


IBJA issued the following clarifications to the jewellery and bullion trade to ensure compliance with regards to PMLA:


Central Board of Indirect Taxes and Customs (CBIC) is regulator of PMLA (Prevention of Money Laundering Act ) , UAPA ( Unlawful Activities Prevention act) and WMDA ( weapon of Mass Destruction Act).


UAPA and WMDA applies to all dealers of precious metals irrespective of their turnover whether they carry out cash or cheque transactions.


PMLA applies to all dealers of precious metals who deal in cash transactions with a customer above Rs. 10 lakh in single operation or in several operations that appear to be linked.


Hence PMLA is not applicable to those precious metal dealers who are not engaged in cash transactions.


Thus, PMLA is applicable to those precious metal dealers who are engaged in cash transactions. If these dealers don't keep KYC records, it will be left to them to prove that they have not entered into a series of transactions with a customer above Rs.10 lacs.


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