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.

<strong>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