Kochi: With the union finance ministry bringing the gold jewellery sector within the purview of Prevention of Money Laundering Act (PMLA), the Enforcement Directorate (ED) has started sending circulars to the jewellers across the state on do’s and donts for sale.
The circular clearly states that if a customer purchases gold, silver, diamond or other expensive jewellery worth Rs 10 lakh then all the transaction documents should be preserved and the details should be passed on to the ED.
The name and other details of people purchasing ornaments with cash should be clearly registered. The new circular says that if gold or cash is seized without proper documents then it would be attached by the government. Besides, the jeweller and staff would be liable to get three to seven years imprisonment. KYC is mandatory for sale of gold ornaments above Rs 2 lakh (by cash). If gold ornaments worth Rs 2 lakh are purchased on different occasions, using cash, then the jeweller need not keep the details of the customers.
"ED circular portrays the gold traders who are traditionally and legally running businesses as black money holders. The provision of providing the information of customers to the ED will have far reaching consequences'', S Abdul Nasser, national director, All India Gem and Jewellery Domestic Council said.
