The Prevention of Money-laundering Act, 2002 (PMLA) aimed at combating money laundering in India came into force with effect from 1st July 2005.
Under the PMLA, the reporting entities inter-alia, included dealer in precious metals, precious stones and other high value goods, as may be notified by the Central Government.
On 23 August 2017, the Central Government issued a notification [Notification No.4 of 2017)] stating that any entity dealing in precious metals, precious stones and other high value goods having a turnover of Rs. 2 crores or more in a previous financial year will be covered under PMLA.
Please note that the above Notification No. 4 of 2017 dated 23rd August 2017 has been withdrawn by the Government on 6th October 2017 with immediate effect. A separate notification shall be issued in due course after careful consideration of points raised and wider stakeholder consultation in this regard.
As a result, no compliance under PMLA shall be required to be done by any entity dealing in gems / jewellery / other high-value goods till the time another notification is issued in this regard.
In this newsflash, we have summarized the notification dated 6th October 2017 rescinding the above notification and a Press Release of even date.
We trust you will find our newsflash useful.