SunstarTV Bureau: Purchase of gold, silver, jewelry, precious gems, and stones above Rs 10 lakh required PAN or Adhaar card of a customer as mandatory Know Your Customer (KYC) document, informed the Department of Revenue (DoR) and Ministry of Finance.
However, below Rs, 2 lakh does not require any identity proof for customers.
According to DoR, the initiative has been taken to prevent illegal activities on terror funding and money laundering.
“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.
Reportedly, the notification issued under PML Act, 2002, on December 28, 2020, is a requirement of FATF Dealers in Precious Metals and Precious Stones (DPMS) to carry out KYC and Customer Due Diligence only when they conduct cash transactions above ₹10 lakh.
“The misinformation being circulated in a certain section of media that any purchase, even if below ₹2 lakh, of gold, silver, jewelry or precious gems and stones in cash require KYC are baseless,” sources added.