Any person who intends to deal in jewellery made of gold, silver, platinum or palladium, precious or semi-precious stones or precious metals and any person who:
i. manufactures, processes, sells, buys, supplies, imports and exports jewellery;
ii. imports, buys, sells and refines precious metals;
iii. involves in trade-in, buys, processes or exports second-hand jewellery and melted or scrap precious metals; and
iv. imports, processes, buys and sells precious and semi-precious stones;
needs to apply to the Director, Assay Office for registration as dealer in jewellery prior to engaging in such activities.

The person may be an individual or a legal entity (e.g. Company, Société or Corporate body)

The application for registration as dealer is a three-step process:

1: Submission of documents at time of application for registration
2: “Fit and Proper” Test
3: Payment of Registration Fee upon notification

FATF Recommendations 28 for DEALERS IN JEWELLERY

According to Recommendation 28 of the Financial Action Task Force (FATF) Recommendations, measures shall be taken by appropriate regulatory body of a Designated Non-Financial Business and Profession (DNFBP), at market entry, to prevent any person with criminal convictions relating to dishonesty, fraud, narcotics and human trafficking, money laundering, terrorist and proliferation financing, theft and financial crime, or other identified risks offences, to own, control or hold a business. One such measure is evaluating the person through the “fit and proper test”. The jewellery sector has been identified among one of the DNFBPs by the FATF.

“FIT AND PROPER” TEST

A “fit and proper” test is carried out based on the following criteria:
i. financial soundness;
ii. competence and capability; and
iii. honesty, reputation and integrity.
In case applicant is a company/other entity, the “fit and proper” test will be carried out for each director, shareholder and beneficial owner.
After the “fit and proper” test is completed, the applicant will be notified whether his application has been approved or rejected.

PAYMENT OF REGISTRATION FEE

Where the applicant has passed the “fit and proper” test, he will have to pay the appropriate fee depending on his nature of activity.
a) Type 1: Dealing in jewellery, precious or semi-precious stones, except exports of melted precious metal, scrap precious metal and second-hand jewellery excluding industrial waste generated by manufacturer of jewellery – Rs 3000/-
b) Type 2: Dealing in jewellery, precious or semi-precious stones, including exports of melted precious metal, scrap precious metal and second-hand jewellery excluding industrial waste generated by manufacturer of jewellery – Rs 150000/-
After payment of the prescribed fee, a certificate of Registration as Dealer in Jewellery will be issued, which is valid for a period not exceeding three years.

DOCUMENTS FOR NEW APPLICATION FOR REGISTRATION AS DEALER

1. Information on Application for Registration as Dealer [for Individual]
2. Information on Application for Registration as Dealer [for Company, Société or Corporate Body]
3. Application Form for Registration as Dealer in Jewellery
4. “Fit and Proper” Person Questionnaire
5. Guide for "Fit and Proper" Person for Registration as Dealer in jewellery