PMLA: Strict regulations put in place for gold transactions above Rs 10 lakh

T J Sreejith

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Representational Image | Photo: Mathrubhumi

Kochi: The union government has made it mandatory for gold merchants to maintain records of transactions above Rs 10 lakhs for a period of 5 years. The new regulations have come into force, as per the changes made to the Prevention of Money Laundering Act, 2002 (PMLA).

In case any ‘suspicious’ transactions are detected, the financial intelligence unit (FIU India) should be notified within seven working days. For this, it is necessary to collect the identity proofs and bank details of such customers. A superior officer of the firm shall be in regular contact with the FIU.

It should be noted that the gold industry was bound by the PMLA regulations ever since December 28, 2020. It is applicable for those who deal with the sales of gold, silver, platinum, diamond, and emerald.

The new regulations stipulate the merchants to maintain records of transactions of Rs 10 lakhs or more, made in a month, in a single go or in instalments. Details including the kind of transaction, the total amount involved, the date of payment and all the other important details of the customers shall be readily available at the stores for a minimum period of five years.

“We cannot look at all the customers who come to buy gold with suspicion,” said Advocate S Abdul Nasar, in response to the newly introduced regulations. He is the National Director of All India Gem and Jewellery Domestic Council and also serves as the State-level Treasurer of All Kerala Gold And Silver Merchants Association.

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