Money Changer Compliance

Money Changer Compliance

Authorized Money Changers/ AMCs are entities who are authorised by the Reserve Bank of India as per Section 10 of the Foreign Exchange Management Act of 1999. Accordingly, an AMC may either be a Restricted Money Changer (RMC) or a Full Fledged Money Changer (FFMC). As defined by the Act, an Authorized Person essentially means an authorised dealer, money changer, off-shore banking unit or any other individual for the time being authorised under sub-section (1) of Section 10 to involve in foreign securities or foreign exchange. A license is required by FFMCs to purchase foreign exchange from residents and non-residents visiting India and to sell foreign exchange for specifically approved purposes.

Mandatory Compliance for Money Changer Dealer

  • Daily Summary and Balance Book (Foreign currency notes / coins) in form FLM 1
  • Daily Summary and Balance Book (Travelers’ cheques) in form FLM 2
  • Register of purchases of foreign currencies from the public in form FLM 3
  • Register of purchases of foreign currency notes / coins from authorized dealers and authorized money changers in form FLM 4
  • Register of sales of foreign currency notes / coins and foreign currency travelers’ cheques to the public in form FLM 5
  • Register of sales of foreign currency notes / coins to authorized dealers / Full Fledged Money Changers / overseas banks in form FLM 6.
  • Register of travelers’ cheques surrendered to authorized dealers / authorized money changers / exported in form FLM 7
  • The Cash Transaction Report (CTR) (for each month should be submitted to the FIU-IND by 15th of the succeeding month. However, while filing CTR, details of individual transactions below Rupees 50,000 need not be furnished) and
  • The Suspicious Transaction Report (STR) (should be furnished within 7 days of arriving at a conclusion that any transaction, including an attempted transaction).

book mark this link

Leave a Reply