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PMLA · AML/CFT/CPF · Precious metals

PMLA compliance for bullion & jewellery industry participants.

Build the policies, training, customer due diligence and screening controls required to prevent money laundering and terrorist financing activities.

Start a compliance review See the four-step path
Programme
AML / CFT / CPF
Due diligence
CDD / EDD
Reporting
FIU-India readiness
Control
Sanctions screening

Guidelines

Policies and processes to prevent money laundering.

Businesses associated with precious metals and stones require a robust PMLA compliance policy. Government guidance sets out the following obligations.

  1. 01

    AML/CFT/CPF programme

    Policies and procedures to combat money laundering, terrorist financing and proliferation financing.

  2. 02

    Internal controls

    Documented internal policies, procedures and controls for dealers in precious metals and stones.

  3. 03

    Information sharing

    A mechanism for information sharing between industry councils, associations and FIU-India.

  4. 04

    Nodal officer

    Appointment of a nodal officer for interaction and information sharing with FIU-India.

  5. 05

    Employee training

    Role-relevant training for management, employees and staff.

  6. 06

    CDD and EDD

    Customer due diligence and enhanced due diligence norms built into daily operations.

  7. 07

    Sanctions screening

    Screening across customers, counterparties, suppliers and transactions.

Is your business compliant?

Four steps from obligation to operating control.

Entities need to follow four practical steps to become PMLA compliant.

  1. Step 01

    Establish policy

    Create a robust AML/CFT/CPF programme through a formal policy accepted by management, enabling EDD and CDD for transactions and activities.

  2. Step 02

    Train the team

    Train top management and staff according to the requirements of the specific business type.

  3. Step 03

    Register with FIU-India

    Register with FIU-India in line with applicable turnover and reporting requirements.

  4. Step 04

    Screen continuously

    Screen current and prospective customers and suppliers during onboarding and when transactions are initiated.

Risks of non-compliance

The cost of inaction is operational, financial and reputational.

Compliance may require investment, but the consequences of non-compliance are more severe.

01

Regulatory risk

  • Investigations and associated costs
  • Regulatory penalties
  • Termination of business licences and closure
  • Personal liability or imprisonment
02

Operational risk

  • Loss of business from compliant counterparties
  • Withdrawal of banking lines and funds
03

Reputational risk

  • Adverse publicity
  • Damage to reputation and brand image
04

Penalties

  • Imprisonment of 3–7 years
  • Fines linked to laundered funds
  • Temporary or permanent asset seizure
  • Seizure of ill-gotten funds and enhanced penalties

What constitutes non-compliance?

  • Failure to implement required measures and procedures for identifying risks.
  • Failure to report suspicious transactions to the Financial Intelligence Unit when required.
  • Failure to screen customer and transaction databases against names on terrorism watchlists.

Be confident with compliance

Specialist support built around your business.

FinMet's former bankers, chartered accountants and ACAMS-certified professionals bring practical experience across AML, KYC and CFT in banking and business.

01

Policies

FinMet develops a customised PMLA policy that adheres to regulations and aligns with global best practices.

02

Training

Interactive online modules help employees understand PMLA requirements and test their knowledge through practical quizzes.

03

ScreenMate

FinMet's screening software checks counterparties, customers and suppliers across multiple databases and creates audit-ready reports.

ScreenMate

Screen, document and retain a defensible audit trail.

ScreenMate uses a straightforward search to screen individuals or entities against an extensive database. It produces instant, time-stamped reports showing the databases searched, supporting transparency, accountability and regulatory record-keeping.

  • AccurateRegular database updates and quality controls support complete, dependable data.
  • PreciseAdvanced matching techniques improve potential-match accuracy and reduce false positives.
  • Up to dateNew sanctions information is incorporated promptly.
  • ReliableSystem stability and uptime keep screening available when it matters.
  • ConfidentialSecurity measures protect sensitive information and support applicable data-protection requirements.
Request a ScreenMate demo

Practical guidance

PMLA Essentials: A Preview

Core questions for dealers in precious metals and stones assessing their PMLA responsibilities.

01Are PMLA regulations applicable to all jewellers?

Yes. The source FinMet guidance states that the requirements apply across categories of dealers in precious metals and stones, including:

  • Precious-metals refiners and processors
  • Bullion traders
  • Jewellery manufacturers, wholesalers and retailers
  • Online, chain, franchise and single-store retailers
  • Diamond and precious-stones manufacturers and traders
02What is a reporting entity?

A reporting entity is a dealer in precious metals or stones carrying on a designated business or profession and registered with FIU-India for transaction reporting under applicable AML/CFT guidelines.

Reportable activity described in the source guidance includes cash transactions above INR 10 lakh, connected cash transactions whose monthly aggregate exceeds INR 10 lakh, transactions involving forged or counterfeit currency, and suspicious or attempted transactions.

03At what transaction value is KYC documentation necessary?

The source FinMet guidance states that customer due diligence is compulsory for a transaction of INR 50,000 or more, whether conducted as a single transaction or as connected transactions.

04Who are the regulatory agencies for PMLA in India?

The source guidance identifies the Directorate General of Audit, Enforcement Directorate and Financial Intelligence Unit-India. It also lists empowered regulators and agencies including SEBI, RBI, IRDAI, the Economic Offences Wing, CBI, the Income Tax Department and Registrar of Companies.

FIU-India receives, processes, analyses and disseminates information relating to suspicious financial transactions.

Review the four-step compliance path Read related articles

Our commitment to excellence

Navigate PMLA requirements with confidence.

FinMet delivers tailored, locally informed solutions for precious-metals industry participants.

Talk to the PMLA team

Regulatory requirements can change. This page provides general information and does not constitute legal advice.

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