TaxTMI 
TaxTMI 
Master Circular on Memorandum of Instructions governing money changing activities
X X X X Extracts X X X X
X X X X Extracts X X X X
....lers Category - II and FFMCs :- SECTION IV Guidelines for Renewal of licences of existing FFMCs : SECTION V Operational Instructions SECTION VI KYC/ AML/ CFT Guidelines SECTION VII Revocation of Licence SECTION VIII 'Fit and proper' criteria for directors of FFMCs / non-bank ADs Category - II Annex-I KYC / AML / CFT Guidelines for money changing activities Annex-II Application Form for FFMC licence under section 10(1) of FEMA, 1999 Annex-III Form RMC-F Annex-IV FLM 1 Annex-V FLM 2 Annex-VI FLM 3 Annex-VII FLM 4 Annex-VIII FLM 5 Annex-IX FLM 6 Annex-X FLM 7 Annex- XI FLM 8 Annex- XII Statement of Purchase transactions of USD 10,000 and above Annex- XIII Statement showing summation of Foreign Currency Account opened in India out of export proceeds of Foreign Currency Notes/ encashed Travellers' Cheques Annex- XIV Statement of the amount of foreign currency written off during the financial year Appendix SECTION-I Guidelines for Licencing and other Approvals for Authorised Money Changers (AMCs) 1. Introduction Authorised Money Changers (AMCs) are entities, au....
X X X X Extracts X X X X
X X X X Extracts X X X X
....iture 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: • Copy each of the Certificate of Incorporation and Certificate of Commencement of Business of the company. • Memorandum and Articles of Association containing a provision for undertaking money changing business or an appropriate amendment to this effect filed with the Company Law Board. • Copy of the latest audited accounts with a certificate from the Statutory Auditors certifying the Net Owned Funds as on the date of application. Copies of the audited Balance Sheet ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....c. should be submitted to the Regional Office concerned of the Reserve Bank before commencement of the business. (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:- Urban Cooperative Banks (UCBs), fulfilling the eligibility norms, would be considered for authorization as Authorised Dealer Category-I / Authorised Dealer Category-II only] SECTION II Guidelines for Grant of Authorisation for Additional Branches:- 1. No FFMC shall carry on money changing business at any additional place of business other than its permanent place of business except with the prior approval of the Reserve Bank. An FFMC which intends to commence money changing business at any additional place of business shall apply in writing to the respective Regional Office of the Foreign Exchange Department under whose jurisdiction the registered office of the applicant falls and the Reserve Ban....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Customs Desk (Green Channel/Red Channel). However, Foreign Exchange Counters may also be established between the Immigration Desk and the Customs Desk in international airports in India subject to the condition that these counters shall only purchase foreign currency and sell Indian Rupees (INR) and "Encashment Certificates" shall invariable be issued by the money changers to the customers. • Foreign Exchange Counters in the departure halls in international airports in India shall be established only before the Customs Desk or the immigration desk, whichever comes first. Putting up suitable display at these counters, reminding the passengers that the area is the last point for non-residents to possess Indian Rupees (INR) may be followed up with the Airport Authorities. 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. SECTION III Guidelines for appointment of Agents / Franchisees by Authorized Dealer Category - I Banks, Authorized Dealers Category - II and FFMCs :- 1. Under the Scheme, the Reserve Bank permits AD Ca....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Banks - I / ADs Category - II / FFMCs should undertake the following minimum checks while conducting the due diligence of the franchisees : • existing business activities of the franchisee/ its position in the area. • minimum Net Owned Funds of the franchisee. • Shops & Establishments / 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. • 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). Note: Obtaining of Conduct Certificate of the franchisee from the local police authorities is optional for the franchisers. However, the franchisers may take due care to avoid appointing individuals/ entities as franchisees who have cases / proceedings initiated / pending against them by any law enforcing agencies. • declaration regarding past criminal case, if any, cases initiated / pending against the franchisee or its d....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is to ensure that the money changing business is being carried out by the franchisees in conformity with the terms of the agreement and prevailing Reserve Bank guidelines and that necessary records are being maintained by the franchisees. 9. Anti Money Laundering (AML) / Know Your Customer (KYC) / Combating the Financing of Terrorism (CFT) Guidelines Franchisees are required to strictly adhere to the AML / KYC/ CFT guidelines, as applicable to AD Category-I Banks / ADs Category - II / FFMCs. Note:- No licence for appointment of franchisees will be issued to any FFMC / non-bank AD Category - II, against whom any major DoE / DRI / CBI / Police case is pending. In case where any FFMC / non-bank AD Category - II has received one-time approval for appointing franchisees and subsequent to the date of approval, any DoE / DRI / CBI / Police case is filed, the FFMC / non-bank AD Category - II should not appoint any further franchisees and bring the matter to the notice of the Reserve Bank immediately. A decision will be taken by the Reserve Bank regarding allowing the FFMC / non-bank AD Category - II to appoint franchisees. SECTION IV Guidelines for Renewal of licences of exi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n of the Reserve Bank. Non-residents, however, have general permission to take out an amount not exceeding the amount originally brought in by them, subject to compliance with the provisions of sub-para (i) above. 2. Purchases of Foreign Currency from Public (i) Authorised Money Changers (AMCs) / franchisees may freely purchase foreign currency notes, coins and travellers cheques from residents as well as non-residents. Where the foreign currency was brought in by declaring on form CDF, the tenderer should be asked to produce the same. The AMC should invariably insist on production of declaration in CDF. (ii) AMCs may sell Indian Rupees to foreign tourists / visitors against International Credit Cards / ^1 International Debit Cards and take prompt steps to obtain reimbursement through normal banking channels. 3. Encashment Certificate (i) AMCs may issue certificate of encashment when asked for in cases of purchases of foreign currency notes, coins and travellers cheques from residents as well as non-residents. These certificates bearing authorized signatures should be issued on the letter head of the money changer and proper record should be maintained. (ii) In ca....
X X X X Extracts X X X X
X X X X Extracts X X X X
....onnection, attention of AMCs is drawn to sub-section (5) of Section 10 of FEMA, 1999. • In case of issue of travellers' cheques, the traveler should sign the cheques in the presence of an authorized official and the purchaser's acknowledgement for receipt of the travellers' cheques should be held on record. • AMCs may release foreign exchange for travel purposes on the basis of a declaration given by the traveler regarding the amount of foreign exchange availed of during the financial year. • AMCs may accept payment in cash up to Rs.50,000/- (Rupees fifty thousand only) against sale of foreign exchange for travel abroad (for private visit or for any other purpose). Wherever the sale of foreign exchange exceeds the amount equivalent to Rs.50,000/-, the payment must be received only by a crossed cheque drawn on the applicant's bank account or crossed cheque drawn on the bank account of the firm / company sponsoring the visit of the applicant or Banker's cheque / Pay Order / Demand Draft. For this purpose, where the Rupee equivalent of foreign exchange drawn exceeds Rs. 50,000/- either for any single drawal or more than one drawal reckoned togeth....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Display of Exchange Rate Chart AMCs should display at a prominent place in or near the public counter, a chart indicating the rates for purchase/sale of foreign currency notes and travellers' cheques for all the major currencies and the card rates for any day, should be updated, latest by 10:30 a.m. 10. Foreign Currency Balances • AMCs should keep balances in foreign currencies at reasonable levels and avoid build up of idle balances with a view to speculating on currency movements. • Franchisees should surrender foreign currency notes, coins and travellers' cheques purchased only to their franchisers within seven working days. • The transactions between authorized dealers and FFMCs should be settled by way of account payee crossed cheques / demand drafts. Under no circumstances should settlement be made in cash. 11. Replenishment of Foreign currency Balances (i) AMCs may obtain their normal business requirements of foreign currency notes from other AMCs / authorized dealers in foreign exchange in India, against payment in rupees made by way of account payee crossed cheque / Demand Draft. (ii) Where AMCs are unable to replenish....
X X X X Extracts X X X X
X X X X Extracts X X X X
....egister of travellers' cheques surrendered to authorized dealers / authorized money changers / exported in form FLM 7 (Annex-X). (ii) All registers and books should be kept up-to-date, cross-checked and balances verified daily. (iii) Transactions not pertaining to money changing business of the AMC should not be mixed up with money changing transactions. In other words, the registers and books of account should show clearly the trail of transactions pertaining to money changing business. (iv) Separate registers should be maintained for each establishment, if the AMC maintains more than one place of business. Note :- Inter-branch transfer of foreign currencies should be accounted as stock transfer and not as sales. 15. Submission of Statements to the Reserve Bank • AMCs should submit to the office of the Reserve Bank which has issued the license, a monthly consolidated statement for all its offices in respect of sale and purchase of foreign currency notes in form FLM 8 (Annex-XI) so as to reach not later than the 10th of the succeeding month. • AMCs should submit to the Regional Office concerned of the Foreign Exchange Department, Reserve Ban....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tutory Auditors are required to certify that the Concurrent Audit and the internal control systems are working satisfactorily. 18. Temporary Money Changing Facilities AMCs are authorized to transact money changing business only at the location or locations specifically indicated in the licence. If it is intended to provide money changing facilities on a temporary basis on certain special occasions, a separate application should be made for the purpose to the Regional Office concerned of the Foreign Exchange Department of the Reserve Bank. Full details such as period for which the exchange counter will be operated, volume of business expected, manner of accounting of the transactions, letter from organizers making available venue for the money changing facilities, etc. should be submitted. 19. (A) Opening of Foreign Currency Accounts by AMCs AMCs, with the approval of the respective Regional Offices of the Foreign Exchange Department, may be allowed to open Foreign Currency Accounts in India, subject to the following conditions:- (i) Only one account may be permitted at a particular centre. (ii) Only the value of foreign currency notes/ encashed TCs exported throug....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ments of the Reserve Bank in this regard. SECTION VI KYC/ AML/ CFT Guidelines Detailed Know Your Customer (KYC) /Anti-Money Laundering (AML) /Combating the Financing of Terrorism (CFT) guidelines in respect of money changing activities are detailed in Annex-I. SECTION VII Revocation of Licence The Reserve Bank reserves the right to revoke the licence granted to an AMC at any time if the Reserve Bank is satisfied that (a) it is in public interest to do so or (b) the AMC has failed to comply with any condition subject to which the authorisation is granted or has contravened any of the provisions of the Foreign Exchange Management Act, 1999 or any rule, regulation, notification, direction or order made there-under. The Reserve Bank also reserves the right to revoke the authorisation of any of the offices for infringement of any statutory or regulatory provision. The Reserve Bank may at any time vary or revoke any of the existing conditions of a money changer's licence or impose new conditions. SECTION VIII [See SECTION I, Paragraph 2 (iii) (iii)] 'Fit and proper' criteria for directors of FFMCs / non-bank ADs Category - II (a) The Boards of FFMCs / non-ba....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the FFMC / non-bank AD Category - II 1. Name : 2. Designation : 3. Nationality : 4. Age : 5. Business Address : 6. Residential Address : 7. Educational / professional qualifications : 8. Line of business or vocation : 9. Name/s of other companies in which the person has held the post of Chairman / Managing Director / Director / Chief Executive Officer : 10. (i) Whether associated as promoter, Managing Director, Chairman or Director with any other FFMC / AD Category - II? : (ii) If yes, the name/s of the company/ies : 11. (i) Whether prosecuted/convicted for any economic offence either in the individual capacity or as a partner / director of any firm / company : (ii) If yes, particulars thereof : 12. Experience in money changing business (number of years) : 13. Equity shareholding in the company No. of shares Face value Percentage to total equity share capital of the company: : : : Signature : Name : Date : Designation (Chief Executive Officer) : Place : Company : Annex-....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gular 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-rule (1 A) of PML Rules - ' Beneficial Owner' means the natural person who ultimately owns or controls a client and or the person on whose behalf a transaction is being conducted, and includes a person who exercise ultimate effective control over a juridical person]. 4. Guidelines 4.1 General APs should keep in mind that the information collected from the customer while undertaking transactions is to be treated as confidential and details thereof are not to be divulged for cross selling or any other like purposes. APs should, therefore, ensure that information sought from the customer is relevant to the perceived risk, is not intrusive, and is in conformity with the guidelines issued in this regard. Any other information from the customer, wherever necessary, should be sought separately with his/her consent. 4.2 KYC Policy APs should frame their KYC policies incorporating the following four key elements: ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....feguards 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. (v) Circumstances, in which a customer is permitted to act on behalf of another person/entity, should be clearly spelt out, the beneficial owner should be identified and all reasonable steps should be taken to verify his identity. b) APs should prepare a profile for each customer, where a business relationship is established, based on risk categorisation. The customer profile may contain information relating to customer's identity, his sources of funds, social/financial status, nature of business activity, information about his clients' business and their location etc. The nature and extent of due diligence will depend on the risk perceived by the AP. However, while preparing customer profile, APs should take care to seek only such information from the customer, which is relevant to the risk category. The customer profile is a confidential document and details contained therein should not be divulged for cross selling or any other purpos....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tended 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 place. Such risk based approach is considered necessary to avoid disproportionate cost to APs and a burdensome regime for the customers. Besides risk perception, the nature of information/documents required would also depend on the type of customer (individual, corporate etc.). For customers that are natural persons, the APs should obtain sufficient identification document/s to verify the identity of the customer and his address/location. For customers that are legal persons or entities, the AP should (i) verify the legal status of the legal person/entity through proper and relevant documents; (ii) verify that any person purporting to act on behalf of the legal person/entity is so authorised and identify and verify the identity of that person; and (iii) understand the ownership and control structure of the customer and determine who are the natural persons who ultimately control the legal person. Customer identification requirements in respect of a f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rporated association or body of individuals. (ii) In cases where there exists doubt under (i) as to whether the person with the controlling ownership interest is the beneficial owner or where no natural person exerts control through ownership interests, the identity of the natural person exercising control over the juridical person through other means. Explanation: Control through other means can be exercised through voting rights, agreement, arrangements, etc. (iii) Where no natural person is identified under (i) or (ii) above, the identity of the relevant natural person who holds the position of senior managing official. B. Where the client is a trust, the Authorised Person shall identify the beneficial owners of the client and take reasonable measures to verify the identity of such persons, through the identity of the settler of the trust, the trustee, the protector, the beneficiaries with 15% or more interest in the trust and any other natural person exercising ultimate effective control over the trust through a chain of control or ownership. C. Where the client or the owner of the controlling interest is a company listed on a stock exchange, or is a majority-own....
X X X X Extracts X X X X
X X X X Extracts X X X X
....omers for any amount less than Rs.50,000/- or its equivalent, photocopies of the identification document need not be obtained. However, full details of the identification document should be maintained. If the Authorised Person has reason to believe that a customer is intentionally structuring a transaction into a series of transactions below the threshold of Rs.50000/-, the A.P. should verify identity and address of the customer and also consider filing a suspicious transaction report to FIU-IND. (ii) For purchase of foreign currency notes and/ or Travellers' Cheques from customers for any amount equal to or in excess of Rs.50,000/- or its equivalent, the identification documents, as mentioned at PART B of Annex-I of this circular, should be verified and copies retained. (iii) (a) Requests for payment in cash in Indian Rupees to resident customers towards purchase of foreign currency notes and/ or Travellers' Cheques from them may be acceded to the extent of only US $ 1000 or its equivalent per transaction. (b) Requests for payment in cash by foreign visitors / Non-Resident Indians may be acceded to the extent of only US $ 3000 or its equivalent. (c) All purchases withi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... receive second and subsequent payments only by crossed cheque drawn on the bank account of the applicant's firm/company sponsoring the visit of the applicant/Bank's cheque / Pay Order / Demand Draft / debit cards / credit cards / prepaid cards, if the total rupee payment, including payments on earlier drawal /s, exceeds Rs. 50,000/- on the second or subsequent drawals. (iv) Encashment Certificate, wherever required, should also be insisted upon. g) Establishment of business relationship Relationship with a business entity like a company / firm/ trusts and foundations should be established only after conducting due diligence by obtaining and verifying suitable documents, as mentioned at PART B of Annex-I of this circular. Copies of all documents called for verification should be kept on record. APs should obtain information on the purpose and intended nature of the business relationship. 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 customer, its business and risk profile. APs should ensure that documents, data....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Politically exposed persons are individuals who are or have been entrusted with prominent public functions in a foreign country, e.g., Heads of States or of Governments, senior politicians, senior government/judicial/military officers, senior executives of state-owned corporations, important political party officials, etc. APs should gather sufficient information on any person/customer of this category intending to undertake a transaction or establish a business relationship and check all the information available on the person in the public domain. APs should verify the identity of the person and seek information about the source of wealth and source of funds before accepting the PEP as a customer. The decision to undertake a transaction with a PEP should be taken at a senior level which should be clearly spelt out in the Customer Acceptance Policy. APs should also subject such transactions to enhanced monitoring on an ongoing basis. The above norms may also be applied to transactions with the family members or close relatives of PEPs. The above norms may also be applied to customers who become PEPs subsequent to establishment of the business relationship. Where a customer subs....
X X X X Extracts X X X X
X X X X Extracts X X X X
....,sub-rule (1B)] APs should examine the background and purpose of transactions with persons (including legal persons and other financial institutions) from jurisdictions included in FATF Statements and countries that do not or insufficiently apply the FATF Recommendations. Further, if the transactions have no apparent economic or visible lawful purpose, the background and purpose of such transactions should, as far as possible, be examined and written findings together with all the documents should be retained and made available to the Reserve Bank/ other relevant authorities, on request. 4.7 Attempted transactions Where the AP is unable to apply appropriate KYC measures due to non-furnishing of information and /or non-cooperation by the customer, the AP should not undertake the transaction Under these circumstances, APs should make a suspicious transactions report to FIU-IND in relation to the customer, even if the transaction is not put through. 4.8 Risk Management a) The Board of Directors of the AP should ensure that an effective KYC programme is put in place by establishing appropriate procedures and ensuring effective implementation. It should cover proper manag....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... reasonable ground of suspicion that it may involve the proceeds of an offence mentioned in the Schedule to the PMLA, regardless of the value involved. APs should, therefore, develop suitable mechanism through appropriate policy framework for enhanced monitoring of transactions suspected of having terrorist links and swift identification of the transactions and making suitable reports to the Financial Intelligence Unit - India (FIU-IND) on priority. b) APs are advised to take into account risks arising from the deficiencies in AML/CFT regime of certain jurisdictions viz. Iran, Uzbekistan, Pakistan, Turkmenistan, Sao Tome and Principe, Democratic People's Republic of Korea (DPRK), Bolivia, Cuba, Ethiopia, Kenya, Myanmar, Sri Lanka, Syria and Turkey as identified in FATF Statement (www.fatf-gafi.org), issued from time to time, while dealing with individuals or businesses from these jurisdictions. In addition to FATF Statements circulated by the Reserve Bank of India from time to time (latest as on June 14, 2013 circulated vide the A.P.(DIR Series) Circular No. 101 dated May 03, 2013 ) APs should also consider using publicly available information for identifying countries, which do....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cords 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 Principal Officer will be responsible for timely submission of CTR and STR to the FIU-IND. 4.13 Maintenance of records of transactions/Information to be preserved/Maintenance and preservation of records/Cash and Suspicious transactions reporting to Financial Intelligence Unit- India (FIU-IND) Section 12 of the Prevention of Money Laundering Act (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009, casts certain obligations on the APs in regard to preservation and reporting of transaction information. APs are, therefore, advised to go through the provisions of Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009 and the Rules notified there under and take all steps considered necessary to ensure compliance with the requirements of Section 12 of the Act ibid. (i) Maintenance of records of transactions APs should introduce a system of maintaining proper record of transactions pres....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s 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 while undertaking the transaction and during the course of business relationship, are properly preserved for at least ten years from the date of cessation of the transaction/ business relationship. The identification records and transaction data should be made available to the competent authorities upon request. c) In paragraph 4.6 of this Circular, APs have been advised to pay special attention to all complex, unusual large transactions and all unusual patterns of transactions, which have no apparent economic or visible lawful purpose. It is further clarified that the background including all documents/office records/memoranda pertaining to such transactions and purpose thereof should, as far as possible, be examined and the findings at branch as well as Principal Officer's level should be properly recorded. Such records and related documents should be made available to help auditors in their day-to-day work relating to scrutiny of tran....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d 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 for filing all types of reports are given in the instructions part of the related formats, APs should scrupulously adhere to the following: (i) The Cash Transaction Report (CTR) for each month should be submitted to the FIU‑IND by 15th of the succeeding month. Cash transaction reporting by branches to their controlling offices should, therefore, invariably be submitted on a monthly basis and APs should ensure to submit CTR for every month to FIU-IND within the prescribed time schedule. (ii) While filing CTR, details of individual transactions below Rupees 50,000 need not be furnished. (iii) CTR should contain only the transactions carried out by the AP on behalf of their customers excluding transactions between the internal accounts of the AP. (iv) A cash transaction report for the AP as a whole should be compiled by the Principal Officer of the AP every month in physical form as per the format specified. The report shoul....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n 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 made available to the competent authorities on request. (v) In the context of creating KYC/ AML awareness among the staff and for generating alerts for suspicious transactions, APs may consider the following indicative list of suspicious activities. Some possible suspicious activity indicators are given below: • Customer is reluctant to provide details / documents on frivolous grounds. • The transaction is undertaken by one or more intermediaries to protect the identity of the beneficiary or hide their involvement. • Size and frequency of transactions is high considering the normal business of the customer. • Change in the pattern of transactions. The above list is only indicative and not exhaustive. (vi) APs should not put any restrictions on transactions where an STR has been made. Moreover, it should be ensured that employees of APs shall keep the fact of furnishing such information as ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... in India. Assessment of risk of Money Laundering /Financing of Terrorism helps both the competent authorities and the regulated entities in taking necessary steps for combating ML/FT adopting a risk-based approach. This helps in judicious and efficient allocation of resources and makes the AML/CFT regime more robust. The Committee has made recommendations regarding adoption of a risk-based approach, assessment of risk and putting in place a system which would use that assessment to take steps to effectively counter ML/FT. The recommendations of the Committee have since been accepted by the Government of India and need to be implemented. Accordingly, APs should take steps to identify and assess their ML/FT risk for customers, countries and geographical areas as also for products/ services/ transactions/delivery channels, in addition to what has been prescribed in the paragraph 4.3 and 4.8 above. APs should have policies, controls and procedures, duly approved by their boards, in place to effectively manage and mitigate their risk adopting a risk-based approach as discussed above. As a corollary, APs would be required to adopt enhanced measures for products, services and customers w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ciation (iii) Resolution of the Board of Directors for undertaking forex transactions with the AP (iv) Power of Attorney granted to its managers, officers or employees to conduct forex transactions on behalf of the corporate and their identification. (v) PAN Card (vi) Telephone Bill Establishment of business relationship- partnership firms -Legal name -Address -Names of all partners and their addresses -Telephone/ Fax numbers of the firm and partners One certified copy each of the following. (i) Registration certificate, if registered (ii) Partnership deed (iii) Power of Attorney granted to a partner or an employee of the firm to transact business on its behalf (iv) Any officially valid document identifying the partners and the persons holding the Power of Attorney, their addresses and their signatures. (v) Telephone bill in the name of firm/ partners. Establishment of business relationship- trusts and foundations -Names of trustees, settlers, beneficiaries and signatories -Names and addresses of the founder, the managers/ directors and the beneficiaries -Telephone/ Fax numbers One certified copy of each of the following. (i) Regist....
X X X X Extracts X X X X
X X X X Extracts X X X X
....alculation thereof is to be enclosed. Rs. 9. Declaration to the effect that the company or any of its directors are not under investigation/adjudication of any law enforcing agencies, such as DoE/DRI and also that no criminal proceedings filed by Crime Investigation Agencies are pending against the company or any of its directors. 10. Undertaking to post competent staff to handle the money changer's business. 11. Name, designation of persons authorised to deal in foreign exchange. 13. A brief write up of the activities of the applicant/nature of business. 14. Whether the applicant had applied earlier for FFMC / RMC licence. If so, the particulars thereof. 15. Any other particulars / special reasons the applicant may wish to state in support of the application. We undertake that in the conduct of money changing business, we shall at all time abide by the rules/regulations/orders/directions/notifications which Reserve Bank may from time to time issue in this behalf. Place: Date: Signature of the applicant with seal Enclosures: 1. Bankers' confidential Report 2. Attest....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... cases where forged notes etc. are detected, the closing balance may be adjusted with remarks indicating the amount and the reasons for writing off. Date: Name:__________________________ Designation:_____________________ Annex-V [See SECTION V , Paragraph 14 (i) (b)] FLM 2 Daily Summary and Balance Book (Travellers' cheques) Date:_______________ Pound Sterling U.S. Dollar Euro Yen Other (Pl. specify) I. Opening Balance II. Add: 1) Purchases from the public 2) Purchases from others (including fresh stock received) Total (I + II) III. Less :1) Sales to public 2)Surrender to ADs/FFMCs 3) Exports IV. Closing Balance (I + II - III) Pre-paid cards sold No. Amount. Date: Name:__________________________ Designation:______________________ Note:- Stock register of blank travellers' cheques/ smart cards in various denominations obtained from authorized dealers/ TC issuers/....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... equivalent Commission charged, if any Total amount received Cash Memo No. & Date Remarks Name of currency Amount in Notes/ coins Amount in TCs/ cards By Cash By Cheque 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 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:__________________ 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. 4. 5. 6.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lace: Date : Stamp Name:_________________________ Designation ____________________ FLM 8 (For ADs Category-II) Summary statement of purchases and sales of foreign currency notes during the month of __________20 Name and addressof the Authorised Dealer Category-II____________________ RBI Licence No.________ USD GBP EURO JPY Others (Specify) A. Opening balance Purchases of foreign currency notes from (a) Public (b) RMCs/FFMCs/ADs including imports. (c) Agents/Franchisees B. Total Purchases (a) + (b) + (c) Sales of foreign currency notes under( with purpose codes) (a) (i) BTQ /(ii) Private Visits (S0302) (b) (i) Business Visits/(ii) Business Travel (S0301) (c) Remittance by tour operators / travel agents to overseas agents / principals / hotels( S0306) (d) Film shooting(S1101) (e) Medical Treatment abroad(S0304) (f) Disbursement of crew wages(S1401) (g) Overseas Education(S0305) (h) (i) Fee for participation in global conferences and specialized training / (ii) Remittance for participa....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 8. Certified that the above particulars are correct as per our records. Name and address of the AD Category - I Signature of Authorized Official of the AD Category - I with Seal Annex- XIV [See SECTION V, Paragraph 15 (iv)] Statement of the amount of foreign currency written off during the financial year ended ______________ Name of the FFMC/ AD Category-II : A. Total amount written-off (in equivalent USD) :- B. Details of the amount written-off :- Sr. No. Date of write-off Amount of foreign currency (with currency-wise break-up) On account of * Approved by FFMC/AD Category-II/ Reserve Ba....