TaxTMI 
TaxTMI 
Anti-Money Laundering Guidelines for Authorized Money Changers
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....all AMCs to formulate suitable policies and procedures in this regard. The Anti-Money Laundering (AML) measures so formulated should include (i) Customer Identification procedure - "Know Your Customer" norms (ii) Recognition, handling and disclosure of suspicious transactions (iii) Appointment of Money Laundering Reporting Officer (MLRO) (iv) Staff Training (v) Maintenance of records (vi) Audit of transactions. 3. To enable AMCs to put in place the policy framework and systems for prevention of money laundering while undertaking money changing transactions, the Reserve Bank has brought out detailed Anti-Money Laundering (AML) guidelines. All AMCs are, therefore, advised to ensure that a proper policy framework on "Know Your Customer" and A....
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....oceeds of crime are exchanged for "clean money" or other assets with no obvious link to their criminal origins. 2. Anti-Money Laundering Guidelines The purpose of prescribing Anti-Money Laundering Guidelines is to prevent the system of Authorised Money Changers (AMCs) engaged in the purchase and / or sale of foreign currency notes/Travelers cheques from being used for money laundering. Therefore, Anti-Money Laundering (AML) measures should include a. Identification of Customer according to "Know Your Customer" norms, b. Recognition, handling and disclosure of suspicious transactions, c. Appointment of Money Laundering Reporting Officer (MLRO), d. Staff Training, e. Maintenance of records, f. Audit of transactions. The followi....
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....unt Payee' cheque / demand draft only. d) Where the amount of forex tendered for encashment by a non-resident or a person returning from abroad exceeds the limits prescribed for Currency Declaration Form (CDF), the AMC should invariably insist for production of declaration in CDF. 5. In all cases of sale of foreign exchange, irrespective of the amount involved, for identification purpose the passport of the customer should be insisted upon. The sale of forex should be made only on personal application and identification. Payment in excess of Rs. 50,000/- towards sale of foreign exchange should be received only by account payee cheque / demand draft. All purchases by a person within one month may be treated as single transaction for the p....
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....t is only indicative and not exhaustive. 8. Appointment of a Money Laundering Reporting Officer (MLRO) a. An MLRO may be appointed by every AMC for monitoring transactions and ensuring compliance with the AML Guidelines issued by the Reserve Bank from time to time. The MLRO will also be responsible for reporting of suspicious transaction/s to the Financial Intelligence Unit (FIU). Any suspicious transaction/s, if undertaken, should have prior approval of MLRO. b. The MLRO shall have reasonable access to all the necessary information/ documents, which would help him in effective discharge of his responsibilities. c. The responsibility of the MLRO may include : * Putting in place necessary controls for detection of suspicious trans....
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....ce of funds, checking the identification documents carefully, reporting immediately to the MLRO, etc.) should be carefully formulated by the AMC and suitable procedure laid down. The AMCs should have an ongoing training programme for consistent implementation of the AML measures 11. Audit/Compliance The concurrent auditor should check all transactions to verify that they have been done in compliance with the anti-money laundering guidelines and have been reported as required. Compliance on the lapses, if any, recorded by the concurrent auditor should be put up to the Board. A certificate from the Statutory Auditor on the compliance with AML guidelines should be obtained at the time of preparation of the Annual Report and kept on record. ....