The Financial Action Task Force (FATF), an international organization for preventing economic crimes, has made major claims against the Indian jewellery industry. FATF said that this sector in India can be used to transfer large amounts of money. The organization also mentioned the difficulty in tracking the transferred funds. FATF expressed concerns that it could be used for terrorism.
In an assessment released for India, the Paris-based global organization said greater attention should be paid to money laundering cases related to smuggling and trading of precious jewellery, given the size of the industry in the country.
Only 9,500 members registered
The report states that there are about 107,500 precious metal dealers in the country, but only 9,500 members are registered with its apex body, the Gem and Jewellery Export Promotion Council. Let us tell you that in order to export or import gemstones in India, a GJEPC membership certificate and tax registration are required. FATF said in its report that currently, apart from precious metals, there are many threats related to money laundering through human trafficking.
FATF praises India
FATF praised India’s efforts in the fight against money laundering in the report. The report released by FATF said that India’s measures to combat money laundering and terrorist financing are quite effective. However, FATF acknowledged that major reforms are needed to strengthen the prosecution of these cases.
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