GST intelligence Arm, Directorate general of Goods and Services tax intelligence, has been newly created for the purpose to regulate the money laundering cases in the gems and jewellery sector under the Prevention of Money Laundering Act, 2005.
New Delhi, the 23rd August 2017, the finance minister, Arun Jaitley amended the Prevention of Money Laundering Act, 2015 in the course to make Directorate General of Goods and Services Tax Intelligence for Gems and Jewellery sector.
To strengthen the PMLA, Directorate will take required steps and establish guidelines to recognise client identity in different sectors. Considering the money laundering cases, terrorist financing issues directorate will make some measures stating client’s identity by client type, business relationship, mode of payment, and amount of transaction. The directorate is concerned regarding the cases like Gold Traders loot public and government through planned tricks and will try to make subsequent measures to intensify PMLA.
Under amended PMLA, every entity needs to maintain the followings:
- A record of all transaction which are exceeding 10 lakh rupees
- A Record of all outside India wire transfers which exceeds the amount of 5 lakh rupees
- A record of immovable property sale and purchase exceeding 50 lakh rupees
Keeping rules provide by Due diligence report, April 2016, DGGSTI will track the applicability and confrontation with the law of entities in Gems and Jewellery Industry. It will notify and track the entity to abide by the law based on transaction records.
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DGGSTI has power to licence, regulate, authorise, register, or supervise the transactions under PMLA. DGGSTI will overcome the hurdles of the tax officers who check money laundering happenings time to time.
DGGSTI is going to replace the Directorate General of Central Excise Intelligence (DGCEI). After the GST, the government is amending and strengthening the laws under PMLA and DGGSTI is also one of them.
