UBO disclosures are required in the GJ sector!

“This is a welcome and much-needed step for the sanity of India’s gems and jewelry (GJ) industry.” The declaration of Ultimate Beneficial Owners (UBOs) by business partners will enable the elimination of last-mile malpractices such as money laundering and terror funding.

Along with this, it will protect the interests of exporters and other industry ancillaries. Overall, this is a win-win situation that would increase the trust of foreign players to conduct hassle-free business in India, hence increasing foreign currency inflows into the country,” said Colin Shah, MD, Kama Jewelry, during the event.

The individual or entity that ultimately owns or controls a business, partnership, trust, or other legal entity is known as the Ultimate Beneficial Owner (UBO). UBO identification is a vital component of Know Your Business (KYB) and Know Your Customer (KYC) processes, and regulators require financial institutions such as banks, investment firms, and insurance companies to identify and verify the UBOs with which they do business.

Previously, the GJEPC explained through MyKYCBank of G&J KYC Information Centre why it is a mandatory disclosures of UBO for Gem & Jewellery Sector, and said, according to World Bank and The Financial Action Task Force (FATF) (FATF is an intergovernmental organization founded in 1989 and is responsible for developing policies to combat money laundering and terrorist financing.) had identified our sector (Dealers in Precious Metals and Stones) as a DNFBP (Designated Non-Financial Business or Profession).

And the FATF has recommended the following measures for DNFBPs: 1: Mandatory customer due diligence (including beneficial owner), 2: Implement an AML/CFT program with a risk-based approach, 3: Enhanced due diligence based on risk assessment and country risks, and 4: Transactions to be scrutinized on a regular basis, as well as reporting of suspicious and cash transactions.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top