In a recent communication addressed to jewellers and members, the Executive Committee of the Calcutta Gem & Jewellers Welfare Association highlighted the importance of understanding and adhering to the provisions of the Prevention of Money Laundering Act (PMLA).
The association emphasized that compliance with the PMLA is essential for combating illegal activities and maintaining the integrity of the financial system.
Recognizing the vital role jewellers play in the economy, the association underscored the need for transparency and accountability within the industry. Jewellers were urged to familiarize themselves with the PMLA provisions, implement robust measures to prevent money laundering and terrorist financing, and report any suspicious activities to the appropriate authorities.
The PMLA requires jewellers to conduct due diligence on customers, maintain transaction records, and avoid cash transactions exceeding Rs.2 lakh. Violations of the PMLA can lead to imprisonment of up to seven years, and the government is empowered to seize assets suspected to be proceeds of crime.
To facilitate compliance, the association provided specific examples of measures jewellers should adopt, such as refraining from accepting cash from individuals involved in criminal activities, exercising caution when dealing with suspicious persons, and maintaining accurate transaction records.
Furthermore, as per the PMLA, companies with a turnover of Rs.500 crores or more are required to appoint a Nodal officer, while companies/entities with a turnover below this threshold fall under the purview of their respective associations. The role of the Nodal officer is to oversee the company's activities, establish mechanisms for sharing information related to funds misuse, and coordinate with the Financial Intelligence Unit (FIU) of India.
The association stressed the importance of ensuring that the appointed Nodal officer understands and fulfills their responsibilities in preventing money laundering and monitoring foreign currency transactions, as directed by the PMLA and the FIU India's guidelines.
In conclusion, the Calcutta Gem & Jewellers Welfare Association emphasized that compliance with the PMLA is not just a legal requirement but a moral obligation to the country and society. By collectively working towards a transparent and accountable jewellery industry, jewellers can contribute to a level playing field and uphold ethical practices.
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