PAN-Aadhaar primarily based KYC obligatory for money buy of gold, silver jewelry? Govt clarifies

Image Source : PTI PAN-Aadhaar primarily based KYC obligatory for money buy of gold, silver jewelry? Govt clarifies
The Department of Revenue (DoR), Ministry of Finance has clarified that any buy of gold, silver, jewelry, or valuable gems and stones under Rs 2 lakh doesn’t require PAN or Aadhaar of a buyer as obligatory Know Your Customer (KYC) doc.

Sources mentioned that the notification issued below PML Act, 2002, on December 28, 2020, is a requirement of FATF Dealers in Precious Metals and Precious Stones (DPMS) to hold out KYC and Customer Due Diligence solely once they conduct money transactions above Rs 10 lakh.

“This is a requirement of FATF (Financial Action Task Force) – the global money laundering and terrorist financing overseer which as the inter-governmental body sets international standards aimed to prevent illegal activities on terror funding and money laundering,” they added.

According to sources, one of many suggestions requires the DPMS sector to fulfil obligations of Customer Due Diligence (CDD) once they conduct money transactions above a sure restrict (USD/EUR 15,000). India is a member of FATF since 2010.

“The misinformation being circulated in certain section of media that any purchase, even if below Rs 2 lakh, of gold, silver, jewellery or precious gems and stones in cash require KYC are baseless,” sources added.

Since in India, money transactions above Rs 2 lakh usually are not allowed below part 269ST of Income-tax Act, 1961, sellers not receiving money greater than Rs 2 lakh in compliance with the prevailing provisions of the Income-tax Act won’t be coated below this notification, they mentioned additional.

(With ANI inputs)
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