The Prevention of Money-laundering Act, 2002 (PMLA) aimed at combating money laundering in India with three main objectives – to prevent and control money laundering, to confiscate and seize the property obtained from laundered money, and to deal with any other issue connected with money laundering in India, came into force with effect from 1st July, 2005.
The Central Government has vide its Notification No. G.S.R. 1058(E) dated 23 August 2017 notified the dealer in precious metals, precious stones and other high value goods having a turnover of Rs. 2 crores or more in a previous financial year as a person carrying on designated business or profession. Through a separate notification dated 23rd August 2017, it has been clarified that the Directorate General of Goods and Services Tax Intelligence would act as Regulator with respect to Gems and Jewellery Sector
In view of the above amendments, it would be recommended that dealers of precious metals, precious stones and other high value goods covered under the Act to-
- Set up policies and procedures to monitor the risk of money laundering
- Train its personnel on the said policies, procedures and client due diligence (KYC norms)
- Maintain a records of all transactions
- Submit periodic reports to the Authority within the prescribed due dates..
- Keep the records for 5 years
- Monitor effectiveness of the procedures
The Act provides for attachment of property as well as prosecution of the accused involved in money laundering.