No new KYC disclosures have been mandated for the cash purchase of gold, silver or precious gems and stones and only high-value cash transactions continue to require the filing of documents such as income tax PAN or biometric ID Aadhaar, finance ministry sources told PTI news agency on Friday.
On 28 December, the Department of Revenue, under the Finance Ministry, had issued a notification that said that cash purchase of jewellery, bullion and precious gems and stones of value more than Rs 2 lakh is not allowed without KYC (Know Your Customer) procedures in the country for the past few years.
The notification issued under PML Act, 2002 on December 28 stated that only persons or entities buying gold, silver, jewellery or precious stones 'in cash transactions' worth Rs 10 lakh or above need to fill know your customer or KYC documents.
This is a requirement of FATF (Financial Action Task Force)-the global money laundering and terrorist financing overseer, the ministry's sources told PTI.
FATF is an inter-governmental body that sets international standards aimed to prevent illegal activities on terror funding and money laundering.
India has been a member of FATF since 2010.
Accordingly, cash purchase of jewellery above Rs 2 lakh is not allowed without KYC in India, which means that no new category is created under this notification, however, the requirement existed under FATF, the sources clarified.