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No new KYC disclosure norm for jewellery purchase; KYC only for high value cash purchases

·1-min read

New Delhi, Jan 8 (PTI) No new KYC disclosures have been mandated for cash purchase of gold, silver or precious gems and stones and only high-value cash transactions continue to require the filing of documents such as income tax PAN or biometric ID Aadhaar, finance ministry sources said Friday.

Clarifying a December 28, 2020 notification, the Department of Revenue in the ministry said cash purchase of jewellery, bullion and precious gems and stones of value more than Rs 2 lakh is not allowed without KYC in the country for the past few years.

This continues.

The notification issued under PML Act, 2002 on December 28 stated that only persons or entities buying gold, silver, jewellery or precious stones 'in cash transactions' worth Rs 10 lakh or above need to fill know your customer or KYC documents.

This is a requirement of FATF (Financial Action Task Force) -- the global money laundering and terrorist financing overseer, they said.

FATF is an inter-governmental body that sets international standards aimed to prevent illegal activities on terror funding and money laundering.

India is a member of FATF since 2010.

Since in India, cash purchase of jewellery above Rs 2 lakh is not allowed without KYC, so no new category is created under this notification. However, it is a requirement to be fulfilled under FATF, they said.

Sources said no new category for disclosure has been created through the notification. PTI ANZ ANZ ABM ABM