India

No must submit PAN or Aadhar as KYC to buy gold, however there is a catch

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The Department of Revenue (DoR), Ministry of Finance has clarified that any buy of gold, silver, jewelry, or treasured gems and stones under Rs 2 lakh doesn’t require PAN or Aadhaar of a buyer as necessary Know Your Customer (KYC) doc.

Sources mentioned that the notification issued underneath PML Act, 2002, on December 28, 2020, is a requirement of FATF Dealers in Precious Metals and Precious Stones (DPMS) to hold out KYC and Customer Due Diligence solely after they conduct money transactions above Rs 10 lakh.

This is a requirement of FATF (Financial Action Task Force) — the worldwide cash laundering and terrorist financing overseer, they mentioned.

FATF is an inter-governmental physique that units worldwide requirements aimed to stop unlawful actions on terror funding and cash laundering. India is a member of FATF since 2010.

According to sources, one of many suggestions requires the DPMS sector to fulfil obligations of Customer Due Diligence (CDD) after they conduct money transactions above a sure restrict (USD/EUR 15,000). India is a member of FATF since 2010.

“The misinformation being circulated in certain section of media that any purchase, even if below Rs 2 lakh, of gold, silver, jewellery or precious gems and stones in cash require KYC are baseless,” sources added.

Since in India, money transactions above Rs 2 lakh aren’t allowed underneath part 269ST of Income-tax Act, 1961, sellers not receiving money greater than Rs 2 lakh in compliance with the prevailing provisions of the Income-tax Act won’t be coated underneath this notification, they mentioned additional.

Sources mentioned no new class for disclosure has been created by the notification.



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