Respite for gem and jewellery industry as government revokes Prevention of Money Laundering Act

New Delhi, Nov 7 (KNN) The lifting of PMLA (Prevention of Money Laundering Act) on 6 October has brought relief to the gems and jewellery companies and the consumers. The stock prices have soared and business have started flourishing again, All India Gems and Jewellery Trade Federation informed.

Earlier on 23 August, PMLA notification was rolled out that required the dealers in precious metals, stones and other high-value goods, to maintain a record of all transaction of value exceeding Rs10 lakh and all cross-border wire transfers of more than Rs5 lakh. Also, the sale of gold above Rs.50,000 required customers to furnish PAN (permanent account number) or Aadhaar card to the jeweller.

Ashok Minawala, Spokesperson, All India gems and jewellery trade federation told KNN that the illegal trade in the gem and jewellery industry has been happening due to duty of 10 percent and in the form of gold bullion bars not in the form of jewellery.

He said the government has taken good decision in withdrawing the PMLA notification which was not well sought off as it had no relevance to the fundamental of money laundering.

He said that in the first notification the entire industry of gems and jewellery including the consumers was brought under KYC norms.

People generally buy jewellery invest their savings into something which is concrete and safe but the PMLA notification froze consumers walking to jewellery stores as they got insecure  and sales were dropped.(KNN/AG)