RBI identifies jewellers, bullion dealers as high risk customers

The Reserve Bank of India has asked banks and financial institutions to treat jewellers and bullion dealers (including sub-dealers) as 'high risk' customers identified and to handle their accounts under strict monitoring. The RBI move follows a fear that the highly cash centric transactions of the jewellers and bullion dealers could encourage black money flowing into the financial stream.

Following the RBI directive, banks would now require to apply stricter monitoring at the time of account opening and the account transactions, report to enforcement agencies in case of suspicious activities observed in the accounts of the jewellers and bullion dealers. Non-compliance to the guidelines would attract hefty penalties, reports add. In its circular to the banks, the RBI noted that ‘High risk associated with such accounts should be taken into account by banks to identify suspicious transactions for filing Suspicious Transaction Reports (STRs) to FIU-IND’, reports add. Financial Intelligence Unit – India (FIU-IND) is the central national agency responsible for receiving, processing, analyzing and disseminating information relating to suspect financial transactions.

The other high risk customers identified by the RBI include besides NRIs, HNIs, trusts, charities, NGOs and others.