The Indian government said that the newly created Directorate General of Goods and Service Tax Intelligence (DGGSTI) “will be the regulator dealing with money laundering cases in the gems and jewelry sector”, according to Gem Konnect.
The Finance Ministry said that the (DGGSTI) will have the authority to “issue guidelines and prescribes measures to establish client identity in different transactions”. The DGGSTI “may prescribe enhanced or simplified measures to verify the client’s identity taking into consideration the type of client, business relationship, nature and value of transactions based on the overall money laundering and terrorist financing risks involved”.
According to the piece, the new rules “are likely to empower the DGGSTI to physically visit premises to check on whether or not any money has been laundered”.
