TaxTMI 
TaxTMI 
Master Circular on Memorandum of Instructions governing money changing activities.
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....thorized Dealer Category - I Banks, Authorized Dealers Category - Il and FFMCs :- 9 SECTION IV 13 Guidelines for Renewal of licences of existing FFMCs : 13 SECTION V 14 Operational Instructions 14 SECTION VI 24 KYC/ AML/ CFT Guidelines 24 SECTION VII 25 Revocation of Licence 25 SECTION VIII 26 'Fit and proper' criteria for directors of FFMCs / non-bank ADs Category - II 26 Annex-I 29 KYC / AML / CFT Guidelines for money changing activities 29 Annex-II 55 Application Form for FFMC licence under section 10(1) of FEMA, 1999 55 Annex-III. 57 Form RMC-F 57 Annex-IV 58 FLM 1 58 Annex-V 59 FLM 2 59 Annex-VI 60 FLM 3 60 Annex-VII 61 FLM 4 61 Annex-VIII 62 FLM 5 62 Annex-IX 63 FLM 6 63 Annex-X 64 FLM 7 64 Annex- XI 65 FLM 8 65 Annex- XII 69 Statement of Purchase transactions of USD 10,000 and above 69 Annex- XIII 70 Statement showing summation of Foreign Currency Account opened in India out of export proceeds of Foreign Currency Notes/ encashed Travellers' Cheques 70 Annex- XIV 71 Statement of the amount of foreign currency written off during the financial year 71 A....
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....ion as FFMC are as follows: Category Minimum Net Owned Funds Single branch FFMC Rs. 25 lakh Multiple branch FFMC Rs. 50 lakh Note :- The Net Owned Funds of applicants, other than banks, should be calculated as per the following. (a) Owned Funds :- (Paid-up Equity Capital + Free reserves + Credit balance in Profit & Loss A/c) minus (Accumulated balance of loss, Deferred revenue expenditure and Other intangible assets) (b) Net Owned Funds :- Owned funds minus the amount of investments in shares of its subsidiaries, companies in the same group, all (other) non-banking financial companies as also the book value of debentures, bonds, outstanding loans and advances made to and deposits with its subsidiaries and companies in the same group in excess of 10 per cent of the Owned funds. (ii) Documentation Application in the form, as at Annex - II, should be submitted to the respective Regional Office of the Foreign Exchange Department of the Reserve Bank under whose jurisdiction the registered office of the applicant falls, along with the following documents: 3 (a) Copy each of the Certificate of Incorporation and Certificate of Commencement of Business of the c....
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....licence would be considered by the Regional Office concerned of the Reserve Bank on the basis of the clearance by an Empowered Committee, set up for the purpose. (v) Reserve Bank's decision in the matter of granting approval or otherwise will be final and binding. (vi) On obtaining approval from the Reserve Bank, a copy of the registration under Shops & Establishment Act or any other documentary evidence such as rent receipt, copy of lease agreement, etc. should be submitted to the Regional Office concerned of the Reserve Bank before commencement of the business. 5 (vii) The FFMC should commence its operations within a period of six months from the date of issuance of licence and inform the Regional Office concerned of the Reserve Bank. (viii) New FFMCs should carry out their activities as per the instructions specified in SECTIONS V and VI below and other instructions issued by the Reserve Bank from time to time. [Note :- No fresh authorization will be issued to Urban Cooperative Banks (UCBs) to function as FFMCs.] 6 SECTION II Guidelines for Grant of Authorisation for Additional Branches :- 1. No FFMC shall carry on money changing business at any add....
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....and Ahmedabad are considered as metropolitan centers. Preference will be given to applications for branches in remote areas of tourist attraction. 4. A copy of the registration under Shops & Establishment Act or any other documentary evidence such as rent receipt, copy of lease agreement, etc. should be submitted to the Regional Office concerned of the Reserve Bank before commencement of business at an additional branch. 5. The FFMC should commence operations of its additional branch within a period of six months from the date of issuance of licence and inform the Regional Office concerned of the Reserve Bank. 8 SECTION III Guidelines for appointment of Agents / Franchisees by Authorized Dealer Category - | Banks, Authorized Dealers Category - Il and FFMCs :- 1. Under the Scheme, the Reserve Bank permits AD Category - I Banks, ADs Category - II and FFMCs to enter into [franchisee (also referred as agency)] agreements at their option for the purpose of carrying on Restricted Money Changing business i.e. conversion of foreign currency notes, coins or travellers' cheques into Indian Rupees. 2. Franchisee A franchisee can be any entity which has a place of busin....
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....other applicable municipal certification in favour of the franchisee. . verification of physical existence of location of the franchisee, where restricted money changing activities will be conducted. 10 · conduct certificate of the franchisee from the local police authorities. (certified copy of Memorandum and Articles of Association and Certificate of Incorporation in respect of incorporated entities). · declaration regarding past criminal case, if any, cases initiated / pending against the franchisee or its directors / partners by any law enforcing agency, if any. . PAN Card of the franchisee and its directors / partners. · photographs of the directors / partners and the key persons of franchisee. The above checks should be done on a regular basis, at least once in a year. The AD Category - I Banks / ADs Category - II / FFMCs should obtain from the franchisees proper documentary evidence confirming the location of the franchisees in addition to personal visits to the site. The AD Category -I Banks / ADs Category - II / FFMCs should also obtain a Chartered Accountant's certificate confirming the maintenance of the Net Owned Funds of the franchisee, i.....
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....6 having registered office within the area of jurisdiction of the respective Regional Office of the Foreign Exchange Department. 2. The Net Owned Funds required are as follows: Category Minimum Net Owned Funds Single branch FFMC Rs. 25 lakh Multiple branch FFMC Rs. 50 lakh 3. Applications for renewal should be submitted along with the documents, mentioned below. (a) Copy of the latest audited accounts with a certificate from the Statutory Auditors regarding the position of Net Owned Funds as on date. (b) Confidential Report from the applicant's banker in a sealed cover. (c) A declaration to the effect that no proceedings have been initiated by/ are pending with the Directorate of Enforcement / Directorate of Revenue Intelligence or any other law enforcing authorities against the applicant company or its directors and that no criminal cases are initiated/ pending against the applicant company or its directors. (d) A copy of the KYC / AML / CFT policy framework existing in the company. Note :- An application for the renewal of a money-changer's licence shall be made not later than one month, or such other period as the Reserve Bank may prescribe, before ....
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....al currency held by non- residents will be allowed to be converted into foreign currency only against production of a valid encashment certificate. 4. Purchases from other AMCs and Authorized Dealers (ADs) AMCs may purchase from other AMCs and ADs any foreign currency notes, coins and encashed travellers' cheques tendered in the normal course of business. Rupee equivalent of the amount of foreign exchange purchased should be paid only by way of crossed account payee cheque/Demand Draft/Bankers' cheque / Pay order. 5. Sale of foreign exchange (I) Private Visits AMCs may sell foreign exchange up to the prescribed ceiling (currently US $ 10,000) specified in Schedule III to the Foreign Exchange Management (Current Account Transaction) Rules, 2000 during a financial year to persons resident in India for undertaking one or more private visits to any country abroad (except Nepal and Bhutan). Exchange for such private visits will be available on a self-declaration basis to the traveller regarding the amount of foreign exchange availed during a financial year. Foreign nationals permanently resident in India are also eligible to avail of this quota for private visits provided....
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....complied with, (ii) sale of foreign currency/ issue of foreign currency travellers' cheques is within the limits (credit/ prepaid cards) prescribed by the bank, (iii) the purchaser of foreign currency/ foreign currency travellers' cheque and the credit/ debit/ prepaid card holder is one and the same person. v. The sale of foreign currency notes and coins within the overall entitlement of foreign exchange should be restricted to the limits prescribed by the Reserve Bank from time to time for the country of visit of the traveller. 6. Sales against Reconversion of Indian Currency AMCs may convert into foreign currency, unspent Indian currency held by non- residents at the time of their departure from India, provided a valid Encashment Certificate is produced. Note (1) : AMCs may convert at their discretion, unspent Indian currency up to Rs. 10,000 in the possession of non-residents if, for bonafide reasons, the person is unable to produce an Encashment Certificate after ensuring that the departure is scheduled to take place within the following seven days. Note (2) : ADs Category - I and ADs Category - II may provide facility for reconversion of Indian Rupees to the ext....
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....es / encashed travellers' cheques to an overseas bank through designated Authorized Dealer Category - I in foreign exchange for realization of their value through the latter. FFMCs may also export surplus foreign currency to private money changers abroad subject to the condition that either the realizable value is credited in advance to the AD Category - I bank's nostro account or a guarantee is issued by an international bank of repute covering the full value of the foreign currency notes / coins to be exported. 13. Write-off of fake foreign currency notes In the event of foreign currency notes purchased being found fake/forged subsequently, AMCs may write- off up to US $ 2000 per financial year after approval of their Top Management after exhausting all available options for recovery of the amount. Any write-off in excess of the above amount, would require the approval of the Regional Office concerned of the Foreign Exchange Department of the Reserve Bank. 14. Registers and Books of Accounts of Money-changing Business (i) AMCs shall maintain the following Registers in respect of their money- changing transactions : (a) Daily Summary and Balance Book (Foreign curren....
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....s per the format in Annex-XIII. (iv) An Annual Statement should be submitted by all the AMCs to the respective Regional Offices of the Foreign Exchange Department, Reserve Bank which have issued the licenses within one month of the financial year-end, giving the details of the amount written off during the financial year, as per the format as at Annex-XIV. 16. Inspection of Transactions of AMCs Section 12(1) of Foreign Exchange Management Act 1999, empowers any officer of Reserve Bank specially authorized in this behalf to inspect the books and accounts and other documents of AMCs. The AMCs should provide all assistance and co- operation to Inspecting Officers in carrying out their inspection. Failure to produce any books of account or other document or to furnish any statement or information or to answer any question relating to the money changing transactions to the Inspecting Officers, shall be deemed to be a contravention of the provisions of the Act ibid. 17. Concurrent Audit (i) AMCs should put in place a system of Concurrent Audit of the transactions undertaken by them. 21 (ii) All single branch AMCs having a turnover of more than US $ 100,000 or equival....
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....to maintain the minimum NOF on an ongoing basis, if there is any erosion in their NOF below the minimum level, they are required to bring it to the notice of the Reserve Bank immediately along with a detailed time bound plan for restoring the Net Owned Funds to the minimum required level. 21. Participation by Full Fledged Money Changers (FFMCs) and Authorised Dealers Category-II (ADs Category-II) in the Currency Futures and Exchange traded Currency Options markets FFMCs and ADs Category-II [which are not Regional Rural Banks (RRBs), Local Area Banks (LABs), Urban Co-operative Banks (UCBs) and Non-Banking Financial Companies (NBFCs)], having a minimum net worth of Rs. 5 crore, may participate in the designated currency futures and currency options on exchanges recognized by the Securities and Exchange Board of India (SEBI) as clients only for the purpose of hedging their underlying foreign exchange exposures. FFMCs and ADs Category-Il which are RRBs, LABs, UCBs and NBFCs, may be guided by the instructions issued by the respective regulatory Departments of the Reserve Bank in this regard. 23 SECTION VI KYC/ AML/ CFT Guidelines Detailed Know Your Customer (KYC) /Anti....
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....s should decide on the acceptance or otherwise and may make references, where considered necessary to the appropriate authority / persons, to ensure their compliance with the requirements indicated. (e) FFMCs / non-bank ADs Category - II should obtain annually as on 31st March a simple declaration that the information already provided has not undergone 26 change and where there is any change, requisite details are furnished by the directors forthwith. (f) Further, the candidate should normally not exceed 70 years of age, should not be a Member of Parliament / Member of Legislative Assembly / Member of Legislative Council. (g) Any change in directors during the year should be reported to the Regional Office concerned of the Foreign Exchange Department, Reserve Bank of India in the Proforma given below. (h) Comments of respective Departments of the Reserve Bank will be obtained on the operations of an applicant who / whose parent organisation is already licenced / authorised by the Reserve Bank. Proforma Information about New Directors / Change of Directors of the FFMC / non-bank AD Category - II 1. Name . . 2. Designation : 3. Nationality : 4. Age....
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....onymity. · Integration - the provision of apparent legitimacy to criminally derived wealth. If the layering process has succeeded, integration schemes place the 29 laundered proceeds back into the economy in such a way that they re-enter the financial system appearing to be normal business funds. 2. The objective The objective of prescribing KYC/AML/CFT guidelines is to prevent the system of purchase and / or sale of foreign currency notes / Travellers' cheques by Authorised Persons (referred as APs hereinafter) from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities. KYC procedures also enable APs to know/understand their customers and their financial dealings better which in turn help them manage their risks prudently. 3. Definition of Customer For the purpose of KYC policy, a 'Customer' is defined as : · a person who undertakes occasional/regular transactions; . an entity that has a business relationship with the AP; . one on whose behalf the transaction is made (i.e. the beneficial owner) [In view of Government of India Notification dated February 12, 2010 - Rule 9, sub....
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....d risk and keeping in mind the requirements of Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009, Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005 as well as instructions/guidelines issued by the Reserve Bank, from time to time. (iv) Not to undertake any transaction where the AP is unable to apply appropriate customer due diligence measures i.e. AP is unable to verify the identity and /or obtain documents required as per the risk categorisation due to non cooperation of the customer or non reliability of the data/information furnished to the AP. It is, however, necessary to have suitable built in safeguards to avoid harassment of the customer. In the circumstances when an AP believes that it would no longer be satisfied that it knows the true identity of the customer (individual/ business entity), the AP should file an STR with FIU-IND. ....
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....nt to bear in mind that the adoption of customer acceptance policy and its implementation should not become too restrictive and must not result in denial of money changing services to general public. 33 4.4 Customer Identification Procedure (CIP) a) The policy approved by the Board of APs should clearly spell out the Customer Identification Procedure to be carried out at different stages i.e. while establishing a business relationship; carrying out a financial transaction or when the AP has a doubt about the authenticity/veracity or the adequacy of the previously obtained customer identification data. Customer identification means identifying the customer and verifying his/her identity by using reliable, independent source documents, data or information. APs need to obtain sufficient information necessary to establish, to their satisfaction, the identity of each new customer, whether occasional or business relationship, and the purpose of the intended nature of relationship. Being satisfied means that the AP must be able to satisfy the competent authorities that due diligence was observed based on the risk profile of the customer in compliance with the extant guidelines in....
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....rification of the address. While issuing operational instructions to the branches on the subject, APs should keep in mind the spirit of instructions issued by the Reserve Bank and avoid undue hardships to individuals who are, otherwise, classified as low risk customers. c) APs should introduce a system of periodic updation of customer identification data (including photograph/s) if there is a continuing business relationship. d) An indicative list of the nature and type of documents/information that may be may be relied upon for customer identification is given in PART B of Annex-I of this circular. It is clarified that correct permanent address, as referred to in PART B of Annex-I, means the address at which a person usually resides and can be taken as the address as mentioned in a utility bill or any other document accepted by the AP for verification of the address of the customer. When there are suspicions of money laundering or financing of the activities relating to terrorism or where there are doubts about the adequacy or veracity of previously obtained customer identification data, APs should review the due diligence measures including verifying again the identity of t....
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....fact pose a low risk, APs should carry out a full scale CDD before undertaking any transaction for the customer. f) Sale of foreign exchange to customers (i) 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 and sale of foreign exchange should be made only on personal application and after verification of the identification document. A copy of the identification document should be retained by the AP. (ii) Payment in excess of Rs. 50,000/- towards sale of foreign exchange should be received only by crossed cheque drawn on the bank account of the applicant's firm/ company sponsoring the visit of the applicant / Banker's cheque / Pay Order / Demand Draft. Such payment can also be received through debit cards/ credit cards/ prepaid cards provided (a) KYC/ AML / CFT guidelines are complied with, (b) sale of foreign currency/ issue of Foreign Currency Travellers' cheques is within the limits (credit/ prepaid cards) prescribed by the bank, (c) the purchaser of foreign currency/ Foreign Currency Travellers' cheque and the credit/ debit/ prepaid card holder is one and the sa....
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....for a trust, APs should take reasonable precautions to verify the identity of the trustees and the settlers of trust (including any person settling assets into the trust), grantors, protectors, beneficiaries and signatories. In all cases beneficiaries should be identified with reference to necessary documents. In the case of a 'foundation', steps should be taken to verify the founder managers/ directors and the beneficiaries. ii) Transactions by companies and firms APs need to be vigilant against business entities being used by individuals as a 'front' for undertaking transactions with APs. APs should examine the control structure of the entity, determine the source of funds and identify the natural persons who have a controlling interest and who comprise the management. These requirements may be moderated according to the risk perception e.g. in the case of a company that is listed on a recognized stock exchange, it will not be necessary to identify all the shareholders. iii) Transactions by Politically Exposed Persons (PEPs) Politically exposed persons are individuals who are or have been entrusted with prominent public functions in a foreign country, e.g., Heads of S....
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....ic or visible lawful purpose. APs may prescribe threshold limits for a particular category of transaction and pay particular attention to the transactions which exceed these limits. High-risk transactions have to be subjected to intensified monitoring. Every AP should set key indicators for such transactions, taking note of the background of the customer, such as the country of origin, sources of funds, the type of transactions involved and other risk factors. APs should put in place a system of periodical review of risk categorization of customers and the need for applying enhanced due diligence measures. Such review of risk categorisation of customers should be carried out periodically. 40 APs should exercise ongoing due diligence with respect to the business relationship with every client and closely examine the transactions in order to ensure that they are consistent with their knowledge of the client, his business and risk profile and where necessary, the source of funds. [In view of Government of India Notification dated June 16, 2010 -Rule 9,sub-rule (1B)] APs should examine the background and purpose of transactions with persons (including legal persons and other f....
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....compliance with KYC/ AML/ CFT guidelines should be obtained at the time of preparation of the Annual Report and kept on record. 4.9 Introduction of New Technologies- Pre-paid cards APs should pay special attention to any money laundering threats that may arise from new or developing technologies that might favour anonymity and take measures, to prevent their use in money laundering purposes. Certain AD Category- I banks are engaged in issuance of Foreign currency denominated pre-paid cards to travelers going abroad. While issuing these pre-paid cards, it should be ensured by the AD Category-I banks that all the KYC/ AML/CFT Guidelines are fully complied with. It is also desirable that, certain APs, who are not eligible to issue such cards but are involved in marketing these cards on behalf of card issuing banks, as well as their customers, are also subjected to KYC measures. 4.10 Combating Financing of Terrorism a) In terms of PML Rules, suspicious transaction should include, inter alia transactions which give rise to a reasonable ground of suspicion that it may involve the proceeds of an offence mentioned in the Schedule to the PMLA, regardless of 42 the value in....
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....onsibilities of the Principal Officer should include overseeing and ensuring overall compliance with regulatory guidelines on KYC/ AML/ CFT issued from time to time and obligations under the Prevention of Money Laundering Act, 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009, rules and regulations made there under, as amended from time to time. The Principal Officer should also be responsible for developing appropriate compliance management arrangements across the full range of AML/CFT areas (e.g. CDD, record keeping, etc.). He will maintain close liaison with enforcement agencies, APs and any other institution which are involved in the fight against money laundering and combating financing of terrorism. With a view to enable the Principal Officer to discharge his responsibilities, it is advised that that the Principal Officer and other appropriate staff should have timely access to customer identification data and other CDD information, transaction records and other relevant information. Further, APs should ensure that the Principal Officer is able to act independently and report directly to the senior management or to the Board of Directors. b) The Prin....
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.... which the transaction was conducted; and d) the parties to the transaction (iii) Maintenance and Preservation of record a) APs are required to maintain the records containing information of all transactions including the records of transactions detailed in Rule 3 above . APs should take appropriate steps to evolve a system for proper maintenance and preservation of transaction information in a manner that allows data to be retrieved easily and quickly whenever required or when requested by the competent authorities. Further, APs should maintain for at least ten years from the date of transaction between the AP and the client, all necessary records of transactions, both with residents and non-residents, which will permit reconstruction of individual transactions (including the amounts and types of currency involved, if any) so as to provide, if necessary, evidence for prosecution of persons involved in criminal activity. b) APs should ensure that records pertaining to the identification of the customer and his address (e.g. copies of documents like passport, driving license, PAN card, voter identity card issued by the Election Commission, utility bills etc.) obtained wh....
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....ilation and manner/procedure of submission of the reports to FIU-IND. It would be necessary for APs to initiate urgent steps to ensure electronic filing of all types of reports to FIU-IND. The related hardware and technical requirement for preparing reports in an electronic format, the related data files and data structures thereof are furnished in the instructions part of the formats concerned. 47 c) In terms of instructions contained in paragraph 4.3(b) of this Circular, APs are required to prepare a profile for each customer based on risk categorisation. Further, vide paragraph 4.6, the need for periodical review of risk categorisation has been emphasized. It is, therefore, reiterated that APs, as a part of transaction monitoring mechanism, are required to put in place an appropriate software application to throw alerts when the transactions are inconsistent with risk categorisation and updated profile of customers. It is needless to add that a robust software throwing alerts is essential for effective identification and reporting of suspicious transactions. 4.14 Cash and Suspicious Transaction Reports A) Cash Transaction Report ( CTR ) While detailed instructions....
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.... to give some details or to provide documents. It is clarified that APs should report all such attempted transactions in STRs, even if not completed by customers, irrespective of the amount of the transaction. (iii) APs should make STRs if they have reasonable ground to believe that the transaction, including an attempted transaction, involves proceeds of crime irrespective of the amount of transaction and/or the threshold limit envisaged for predicate offences in part B of Schedule of Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009 . 49 (iv) The Suspicious Transaction Report (STR) should be furnished within 7 days of arriving at a conclusion that any transaction, including an attempted transaction, whether cash or non-cash, or a series of transactions integrally connected are of suspicious nature. The Principal Officer should record his reasons for treating any transaction or a series of transactions as suspicious. It should be ensured that there is no undue delay in arriving at such a conclusion once a suspicious transaction report is received from a branch or any other office. Such report should be mad....
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....ons about the source of funds, checking the identification documents carefully, reporting immediately to the Principal Officer, etc.) should be carefully formulated by the AP and suitable procedure laid down. The APs should have an ongoing training programme for consistent implementation of the AML measures. c) Hiring of Employees It may be appreciated that KYC norms/AML standards/CFT measures have been prescribed to ensure that criminals are not allowed to misuse the system of APs. It would, therefore, be necessary that adequate screening mechanism is put in place by APs as an integral part of their recruitment/hiring process of personnel to ensure high standards. 51 PART B Customer Identification Procedure Features to be verified and documents that may be obtained from customers Features Documents Transactions with individuals - Legal name and any other names used (i) Passport (ii) PAN card (iii) Voter's Identity Card (iv) Driving licence (v) Identity card (subject to the AP's satisfaction) (vi) Letter from a recognized public authority or public servant verifying the identity and residence of the customer to the satisfaction of the AP - Correct permanent ....
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....ing body of the foundation/ association (v) Telephone bill 53 PART C List of various reports and their formats 1. Cash Transaction Report (CTR) 2. Electronic File Structure- CTR 3. Suspicious Transaction Report (STR) 4. Electronic File Structure-STR For the formats of the above reports, please refer to the attachments after (F- Part-III) [Annex to A.P. (DIR Series) Circular No.17 {A.P. (FL/RL Series) Circular No. 4 } dated November 27, 2009 ] 54 Annex-II [See SECTION I, Paragraph 2 (ii)] Application Form for FFMC licence under section 10(1) of FEMA, 1999 1. Full name of the applicant 2. Address in full 3. Name of location/s to where the applicant proposes to conduct Money Changing Business (Please enclose copies of the Licences under Shops and Establishment Act) 4. (a) Date of establishment of the company (b) Name/s and address/es of the Directors of the company 5. Copy of the Certificate of Registration (Certificate of Incorporation & Certificate of Commencement of Business) of the company 6. Copy of Memorandum of Association together with a letter indicating the clause which provides for taking up money changer's business. ....
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....y, if any 8. PAN Numbers of the franchisee and its directors/ partners 9. Arrangements in place to surrender the foreign exchange 10. AML, Reporting, Audit and Inspection arrangements We declare that while selecting the franchisees adequate due diligence has been carried out and that such entities have undertaken to comply with all the provisions of the franchising agreement/prevailing RBI regulations regarding money changing. Place :- Date :- Authorized Signatory 57 Annex-IV [See SECTION V , Paragraph 14 (i) (a)] FLM 1 Daily Summary and Balance Book (Foreign Currency notes/coins) Date: Pound Sterling U.S. Dollar Euro Yen Other (Pl. specify) I. Opening Balance II. Add: Purchases (i) Purchases from the public (ii) Purchases from authorized dealers, money- changers and franchisees (iii)Import from abroad for replenishment of stock Total purchases Total (I + II) III. Less Sales: (i) Sales to public (ii) Sales to authorized dealers/ full-fledged money changers (iii) Despatched abroad for realization Total Sales IV. Closing Balance (I + II - III) N.B: In cases where forged notes etc. are detected, the closing balance ....
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....u ntry/ ies of visit Purpose of visit Duration of stay abroad (No. of days) 1. 2. 3. 4. 5. 6. 7. 8. 9. Particulars of foreign currency notes/coins/ TCs/pre-paid cards Rate Rupee equival ent Commis sion charged , if any Total amou nt receiv ed Cash Memo No. & Date Remarks Name of Amount Amoun B B currency in t y y Notes/ in TCs/ C C coins cards as h h e q u e 10. 11. 12. 13. 14. 15. 16 1 18. 19. . 7. NOTES:(1) If the money-changer is dealing in a large number of currencies, two or more registers currency-wise or otherwise may be maintained, as convenient. (2) If more than one currency is sold, separate entries may be made (3) The columns 6 and 9 to be filled in case of release of exchange for business purpose Date: Name: Designation: 62 Annex-IX [See SECTION V , Paragraph 14 (i) (f)] FLM 6 Register of sales of foreign currency notes/coins to authorised dealers / full fledged money changers/overseas banks Date Sr. No. Name and address of the authorised dealer/full fledged Money changer/ overseas bank to whom sold Currency Amount Rate Rupee Equivalent received Remarks 1. 2. 3. ....
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.... specialized training / (ii) Remittance for participation in international events / competitions (towards training, sponsorship and prize money)/ (iii) Remittance under educational tie up arrangements with universities abroad/(iv) Remittance towards fees for examinations held in India and abroad and additional score sheets for GRE, TOEFL etc./ (v) Employment and processing, assessment fees for overseas job applications/(vi) Skills / credential assessment fees for intending migrants/(vii) Visa fees /(viii) Processing fees for registration of documents as required by the Portuguese / other Governments/ 67 (ix) Registration / Subscription / Membership fees to International Organizations (S1102) (h) Emigration Fees (S1202) (i) Emigration Consultancy Fees (S1006) (k) Sales to other FFMCs/ADs including exports C. Total Sales [ (a) + (b) + (c) + (d) + (e) + (f) + (g) + (h )+ (i) + (j)+ (k) ] Closing balance (A+B - C) (ix) Registration / Subscription / (h) Emigration Fees (S1202) (i) Emigration Consultancy Fees (S1006) (k) Sales to other FFMCs/ADs including exports We hereby certify that the statement is a true and correct ....