PMLA update for G&J – Record-keeping of cash deals in Gems & Jewellery trade now a must under PMLA
- Ministry of Finance vide notification dated 28th Dec., 2020 rescinded the notification No. 8/2017, dated 15 November, 2017 which provided for a relaxation to jewellers from reporting requirements of PMLA (Prevention of Money Laundering Act, 2002).
- Under the PMLA, every reporting entity has to maintain record of all transactions of value exceeding Rs 10 lakh, all cross border while transfers of more than Rs 5 lakh and all purchase and sale of immovable property of Rs 50 lakh or more.
- With the above notification, dealers in precious metals, precious stones notified as persons carrying on designated businesses or professions, if they engage in any cash transactions with a customer equal to or above Rs 10 lakhs, carried out in a single operation or in several operations that appear to be linked.
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