The department of revenue (DoR), Ministry of Finance has clarified that any purchase of gold, silver, jewellery, or precious gems and stones below Rs 2 lakh does not require permanent account number (PAN) or Aadhaar of a customer as mandatory Know Your Customer (KYC) document.
Sources said the notification, issued under PML Act on December 28, 2020, is a requirement of Financial Action Task Force (FATF) Dealers in Precious Metals and Precious Stones (DPMS) to carry out KYC and customer due diligence only when they conduct cash transactions above Rs 10 lakh.
“This is a requirement of 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,” they added.