Page 34 - Bullion World Issue 11 Volume 05 November 2025

Bullion World | Volume 5 | Issue 11 | November 2025

enforcement focus and stiffer penalties. Solutions and the Path Forward
Moreover, the adoption of advanced AI and data
mining by India’s Financial Intelligence Unit and rapid Mr KP Singh advocates for greater adoption of global
information sharing among enforcement agencies best practices and initiatives such as Authorized
have increased the detection and deterrence of non- Economic Operator (AEO) status, which facilitates
compliance. As more major refineries and jewellers go expedited customs clearance for compliant companies.
public, their enhanced disclosure and adherence to Strengthening responsible sourcing through OECD
compliance norms set new industry benchmarks likely and FATF guidelines, improving duty differential
to reduce the need for intrusive enforcement. policies for gold refineries, and ensuring regulatory
alignment across central and state authorities are
The Battleground of Classification and Policy highlighted as practical steps.
Consistency
Industry self-regulation, as exemplified by IAGES,
Disputes over product classification, especially is seen as an essential complement to government
regarding alloys or semi-finished bullion products, oversight, reducing disputes, enhancing global
can trigger costly investigations. International best competitiveness, and promoting a cleaner, more
practices, such as the U.S. approach of simply using trustworthy gold ecosystem. Meanwhile, ongoing
the highest-weighted component for classification, are dialogue between policymakers and industry
suggested as ways to bring the Indian regime in line stakeholders remains crucial to evolving India’s stature
with global standards and cut down on ambiguities— as a global gold hub.
which frustrate both business and regulators.

On the policy front, restrictions and prohibitions on
certain gold and silver imports (or specific supplier
countries) can shift rapidly through DGFT (Directorate
General of Foreign Trade) notifications, requiring
regular vigilance by importers. Even the timing of such
notifications—whether products were “restricted”
before or after arrival—can affect regulatory outcomes,
adding yet another layer of complexity.

Bullion as Asset, Money, and Target for Regulation

India’s changing economic landscape has blurred the
lines between bullion as commodity, asset, or money.
As central banks worldwide (including the RBI) ramp
up gold reserves in response to de-dollarization and
financial instability, the strategic value of bullion only
grows.

But this also attracts heightened regulatory scrutiny.
Since demonetization in 2016, research has identified
a strong correlation between gold holding and
black money hoarding, intensifying calls for robust,
technology-supported compliance. New asset classes,
including cryptocurrencies and digital money, have
entered the landscape, but gold’s unique allure
endures.

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