The Indian jewellery sector, known for its legacy and high-value transactions, has come under increased regulatory scrutiny. With the extension of the Prevention of Money Laundering Act (PMLA), 2002 to cover jewellers, especially following the November 2023 circular, it’s clear that regulatory compliance is no longer optional—it’s essential.
Jewellers have traditionally operated in a trust-driven ecosystem. However, with rising concerns around money laundering, terror financing, and unaccounted wealth, the government has taken a firm stance to bring greater transparency and traceability to high-value sectors. As a result, jewellers dealing in transactions above a specified threshold now fall under the definition of a “Reporting Entity” under PMLA.
Complying with PMLA is not just about avoiding penalties—it’s about safeguarding your business. The law mandates jewellers to perform customer due diligence, maintain transaction records, and report suspicious activities. These measures may seem cumbersome at first, but they play a vital role in ensuring that your business is not unknowingly used as a channel for illicit activity.
The November 2023 update reinforced the importance of digital reporting, stronger KYC norms, and increased accountability. For jewellers, this represents a shift toward formalisation and professionalism. Being compliant enhances your brand reputation, builds customer trust, and ensures long-term sustainability in a competitive market.
In an era where regulatory frameworks are tightening, PMLA compliance is not a burden—it’s a business advantage. Forward-thinking jewellers are embracing technology to automate compliance, streamline operations, and align with government expectations.
Staying informed and compliant is the key to thriving in today’s regulated gold market.