New Delhi: Dismissing reports which claimed that PAN-Aadhaar based Know Your Customer (KYC) document would be required to buy gold, silver or any other precious gems, the Department of Revenue (DoR), Ministry of Finance clarified no new KYC disclosures have been mandated for cash purchase of gold, silver or precious gems and stones. Also Read – On Makar Sankranti, Gold Price Today Sees Sharp Decline, Silver Gains
Clarifying its last year’s notification, the Department of Revenue in the ministry said cash purchase of jewellery, bullion and precious gems and stones of value more than Rs 2 lakh is not allowed without KYC in the country for the past few years. Also Read – Gold Prices Today January 12, 2021: Yellow Metal Rates Fall Again, Down Almost Rs 7,000 From Record Highs
It said that 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 Also Read – Gold Price Today 11 January 2021: Prices Down From Record High. Is It The Right Time To Invest on 22, 18 Carat Yellow Metal?
“This is a requirement of FATF (Financial Action Task Force) – the global money laundering and terrorist financing overseer which as the inter-governmental body sets international standards aimed to prevent illegal activities on terror funding and money laundering,” it added.
Notably, FATF an inter-governmental body aimed to prevent illegal activities on terror funding and money laundering. India is a member of FATF since 2010.
Sources in the ministry said that the misinformation being circulated in a 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 said no new category for disclosure has been created through the notification.
(With agency inputs)