News
Gem and jewellery industry not happy with FIU directive
View(s):Sections of the Gem and Jewellery industry are up in arms over a Financial Intelligence Unit directive urging them to collect customer information.
The FIU, which comes under the Central Bank, has requested gem and jewellery establishments to appoint compliance officers to take down the name, identity card or passport number of the clients. They are also required to question customers about their sources of income, if they spend more than US$ 15,000.
The FIU in a letter has explained that they have made the directive to appoint a Compliance Officer under the Financial Transaction Reporting Act.
“We cannot question our customers,” said Ravindra Kumara, a business development manager of a private Gem and Jewellery Company.
“When we question them regarding their source of income and get their passport or identity card details they think we are looking into their personal details. They may think we are interrogating them. This may discourage them to visit our showrooms,” he said.
Mr. Kumara said the government should device a plan to stop money laundering by bringing regulations in the banking sector rather than introduce an impractical systems that would have a negative impact on the industry.
Some businesses have already complied with the Central Bank’s directive and appointed compliance officers.
Mohamed Naseem Abadul Rahuman, a compliance officer of a gem company, said a majority of the clients were reluctant to give personal information. “Some foreign clients are not comfortable to even write down their passport number and name as they think we are trying to get their personal details,” he said.
He said the gem industry was already affected by a drop in the arrival of tourists after the 52-day political crisis last year and the Easter Sunday attacks this year. This move will further hit the business.
The Gem and Jewellery Association’s secretary Sheriff Abdull Rahuman said they had advised gem merchants to appoint compliance officers.
The Gem and Jewellery Authority’s Director General Dumith Somiratne said that they also advised gem merchants to comply with the FIU’s requirement.
He said that regulations were aimed at stopping money laundering and terrorism financing.