FATF says India's jewelery industry needs to be monitored,
Risks being used to finance terrorism
NEW DELHI, France-based financial watchdog FATF has warned that high-volume transactions in India's gems and jewelery sector are likely to be used as tools for money laundering and terrorist financing.
In this regard, the organization's statement said
As the trade in navarat gems and gold jewelery has grown in India, there is a risk of their smuggling and black money transactions also increasing.
Removal of ban on gold loan to IIFLMumbai, 'I.I.F. RBI has removed restrictions imposed on the gold loan business of L. Finance, the company said.I.I. F. RBI had imposed restrictions on the gold loan business of L. Finance Company on March 4. They have now been withdrawn, the company said in the stock exchange.Through this, the company has been allowed to engage in gold loan business again.
monitoring
In this sector, there are about 1.75 lakh distributors in India, but only 9,500 members are registered with the Gems and Gold Jewelery Export Development Council.
In the high-value jewelery industry, there is a lack of monitoring of those involved in illegal money transfers and smuggling. India should be serious in curbing the smuggling of navarat gems, jewellery, unaccounted movements and illegal money transactions through it, however small it may be.
Illegal
The government should improve the statistics on import, export, domestic balance and exchange rate. Otherwise, there is a risk that the illicit transactions of the jewelery industry will be used to finance terrorism. It has been said.