The new money laundering rules will be implemented with immediate effect. Any jewellery company that deals with precious metals and precious stones like gold, diamonds, silver, gems etc, which has a turnover of Rs 2 cr or more will be covered under the Prevention of Money Laundering Act, 2002.

According to the new rule, the limit of Rs 2 cr will be arrived at based on the turnover of the previous year. The directorate general of GSTI (DGGSTI) has been appointed under this Act to administer the transactions that take place in the jewellery sector.

This is a move by the government as a result of what had happened post demonitization last year. The jewellers went ahead and sold gold and jewellery at a huge premium in exchange for old currency notes. This has taken the sector by complete surprise.