PMLA Ex­emp­tion De­lights Jewellers

Solitaire - - SPECTRUM -

The All In­dia Gems and Jew­ellery Trade Fed­er­a­tion (GJF) wel­comed the Gov­ern­ment of In­dia’s de­ci­sion to keep the gem and jew­ellery in­dus­try out of the am­bit of the Preven­tion of Money Laun­der­ing Act (PMLA). Over the past few weeks, GJF along with in­dus­try del­e­gates had a se­ries of meet­ings with the Fi­nan­cial In­tel­li­gence Unit (FIU), Direc­torate Gen­eral of Goods and Ser­vices Tax In­tel­li­gence (DGGSTI), BJP pres­i­dent Amit Shah and with NITI Aayog and rep­re­sented their con­cerns on this is­sue.

As per No­ti­fi­ca­tion No.4/2017 dated Au­gust 23rd 2017, the cen­tral gov­ern­ment no­ti­fied deal­ers in pre­cious me­tals, pre­cious stones and other high value goods hav­ing a turnover of I2 crore in a fi­nan­cial year as a per­son car­ry­ing on des­ig­nated busi­ness or pro­fes­sion.

As a con­se­quence, var­i­ous com­pli­ances un­der the PMLA were re­quired to be un­der­taken by the gems and jew­ellery sec­tor, which was to be over­seen by the DGGSTI. Crit­i­cal among these were the re­quire­ment un­der Rule 9 of the PMLA Rules, whereby a re­port­ing en­tity must ver­ify the iden­tity of its clients, via a KYC process, for ev­ery trans­ac­tion of I50,000 or more (whether con­ducted as a sin­gle trans­ac­tion or sev­eral trans­ac­tions that ap­pear to be con­nected).

Nitin Khan­del­wal, chair­man, GJF, said, “This is re­ally a great news for the in­dus­try and we are thank­ful to Honourable PM Naren­dra Modi ji, FM Arun Jait­ley ji and Amit Shah ji. Over the past 20 days we had met each and ev­ery depart­ment and key per­son­nel in the gov­ern­ment. The sup­port that we got from var­i­ous as­so­ci­a­tions and chain store own­ers on this con­cern was phe­nom­e­nal. This is re­ally a proud mo­ment for our in­dus­try and we look for­ward to good busi­ness dur­ing the fes­tive sea­son.”

The gov­ern­ment re­scinded its ear­lier no­ti­fi­ca­tion in a state­ment dated Oc­to­ber 7th 2017 which read: “The gov­ern­ment has re­ceived rep­re­sen­ta­tions from var­i­ous as­so­ci­a­tions in the gems and jew­ellery sec­tor with re­spect to cer­tain in­con­gruities in No­ti­fi­ca­tion No.4/2017 dated Au­gust 23rd 2017, wherein deal­ers in pre­cious me­tals, pre­cious stones and other high value goods were no­ti­fied as per­son car­ry­ing on des­ig­nated busi­ness and pro­fes­sions un­der the Preven­tion of Money-Laun­der­ing Act, 2002. Af­ter con­sid­er­ing var­i­ous as­pects of the is­sue, the gov­ern­ment has de­cided to re­scind the said no­ti­fi­ca­tion. A sep­a­rate no­ti­fi­ca­tion af­ter due con­sid­er­a­tion of points raised and wider stake­holder con­sul­ta­tion in this re­gard, shall be is­sued in due course.”

GJF chair­man Nitin Khan­del­wal.

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