New money laundering norms stump jewellery sector

Dealers with turnover of Rs 2 crore and above covered; industry says threshold too low

The central government has notified the money laundering rules for the gems and jewellery sector with immediate effect.

Now, any entity deals in precious metals, precious stones, or other high-value goods and has a turnover of Rs 2 crore or more in a financial year will be covered under the Prevention of Money Laundering Act, 2002 (PMLA, 2002).

The limit of Rs 2 crore would be calculated on the basis of the previous year’s turnover, said the notification. The directorate general of goods and service tax intelligence has been appointed under the Act.

Sources said the government’s move to apply