Articles 4th Oct 2024
In this article, our Partner, Supreme Kothari, analyses the key findings, pertaining to the dealers in precious metals and stones (‘DPMS’), in the recently issued FATF report pertaining to India’s Mutual Evaluation Review. The report analyses India’s level of compliance with the FATF recommendations and the level of effectiveness of India’s anti-money laundering (AML) / counter-terrorist financing (CTF) system, as at the time of the on-site visit of the assessment team, from 6-24 November 2023, and the same also provides recommendations on how such system could be strengthened.
After analysing the report from the standpoint, the author observes that the overarching finding qua DPMS remains that, owing to the cash transaction related restriction under Income tax, they do not accurately fall within the fold of the regulatory framework under the PMLA laws. In view thereof, there is a suggestion that the monitoring and enforcement of the cash threshold prohibition in the sector should be enhanced.
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