Page 14 - Bullion World Volume 3 Issue 9 September 2023

Bullion World | Volume 3 | Issue 9 | September 2023

• All dealers have to register under; The speaker made note of the Anti-Money laundering
1. Category A – engage in non-cash transaction measures implemented in India given below
at HK$120000 or above • The Unlawful Activities (Prevention) Act, 1967
2. Category B – engage in cash transaction • The Prevention of Money-Laundering Act, 2002
3. at HK$120000 or above • The Weapons of Mass Destruction and their Delivery
4. Concept of fit & proper business entity Systems (Prohibition of Unlawful Activities) Act, 2005
• United Nations Security Council resolutions.
HONGKONG (APG) • Instructions by RBI/CBEC/FIU
• Anti-money laundering laws – Federal Decree
No. 20 of 2018 MILESTONES
• Cabinet resolution no. 24 of 2022 • Included DPMS in PMLA Act, 2002
• Dealers in Precious Metals and Stones Report • Prevention of Money Laundering (Maintenance of
( DPMSR) w.e.f 12th June, 2021. Records) Rules, 2005 (PMLR)
• All DPMS are obligated to report transactions • Liability to report notified on 28th December, 2020.
exceeding AED 55,000 in cash or wire transfers • Issued guidelines on AML standards, CFT & PF
(in specified cases) obligations for DPMS on 4th May, 2023.

INDIA - FATF Action to be taken by DPMS
• Lead Ministry/Authority in the FATF Delegation • KYC / Client Due Diligence (CDD) – Ultimate
– Ministry of Finance: Department of Economics Affairs Beneficial owner
• Internal policies, procedures & controls
Other Ministries / Authorities • Training of staff and other stakeholders
– Central Board of Excise and Customs (CBEC) • Risk based Assessment
– Financial Intelligence Unit (FIU) • Reporting of suspicious transactions
– Ministry of Law and Justice

Mr Surendra Mehta, Q & A Session:
National Secretary, IBJA, Questions- As advance payment
thanked Mr Vaidya and Mr Rajarshi on the import of gold is not allowed.
for the insightful information about the How does this correlate to the PMLA
PMLA Act and regulations. Further, regulations?
the speaker explained that the law of
PMLA clearly states that any amount Mr Bhargava Vaidya- Well, as we
above 10 lakh rupees in a month, all know, when currency or forex is
which is a cash transaction (single imported, there cannot be any form
or multiple), must be reported to the of advance payment associated with
FIU. Any suspicious transactions it. The same logic of currencies is
must also be reported; all dealers applied to the import of gold.
with a turnover of more than 500
crore must appoint a nodal officer What can be done or implemented
from their offices. Dealers with a for the small jewellers to restrict Mr Surendra Mehta
turnover of less than 500 crore must them from dealing in cash sales
be affiliated with an association, and as there are a lot of unaccounted
that association must coordinate with records especially amongst the difficult for any regulatory authority to
the PMLA regulators small business owners? oversee the transactions of each and
every jeweller. As explained in the
Mr Surendra Mehta- As there presentation, only a turnover of more
are close to 3 or 4 lakh jewellers in than 500 crore businesses must get
the bullion industry, it can be very themselves registered.

14