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RBI/2005-06/428
A. P. (DIR Series) Circular No. 39
A. P. (FL Series) Circular No. 2
June 26, 2006
To,
All Authorised Persons in Foreign Exchange,
Madam/Sir,
Anti-Money Laundering Guidelines
Attention of Authorised Persons is invited the
Anti-Money Laundering guidelines for Authorised Money Changers issued vide A.
P. (DIR Series) Circular No.18 {A.P. (FL Series) Circular No.01} dated December
2, 2005. In view of the difficulties expressed by Authorised Money Changers
(AMCs) in implementing some of the guidelines, it has been decided to amend
certain instructions of the aforementioned circular. The amended instructions
are given in the Annex.
2. The Anti-Money Laundering Guidelines issued
to Authorised Money Changers vide the above A.P. (DIR Series) Circular No.18
dated December 02, 2005 and any subsequent amendments thereto would be applicable,
mutatis mutandis, to Authorised Dealers - Category I and II in respect of their
money changing transactions.
3. Authorised persons may bring the contents
of this circular to the notice of their constituents concerned.
4. Necessary amendments to the Memorandum
of Instructions to Authorised Money Changers are being issued separately.
5. The directions contained in this circular
have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange
management Act, 1999 (42 of 1999). Non-compliance with the guidelines would
attract penal provisions of Section 11(3) of the Act ibid.
Yours faithfully,
M. Sebastian
Chief General Manger
Annex
[Annex to A. P. (DIR Series) Circular No. 39 dated
June 26, 2006]
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Paragraph No. [cf. A. P. (DIR Series)
Circular No.18 {A.P. (FL Series) Circular No.01} dated December 2, 2005]
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Existing Instructions
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Amended Instructions
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All transactions should be undertaken
only after proper identification of the customer. Photocopies of proof
of identification should invariably be retained by the AMC after verifying
the document in original. Full details of name and address as well as
the details of the identity document provided should also be kept on record.
If a transaction is being undertaken on behalf of another person, identification
evidence of all the persons concerned should be obtained and kept on record.
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For purchase of foreign exchange less
than US $ 200 or its equivalent, photocopies of the identification document
need not be kept on record. However, full details of the identification
document should be maintained.
For encashment of foreign exchange between
US $ 200 and US $ 2000 or its equivalent, the photocopies of the identification
document should be maintained for one year and completion of statutory
audit.
For encashment in excess of US $ 2000
or its equivalent, the photocopies of the identification document should
be maintained for a minimum period of five years.
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4(c)
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Requests for payment of sale proceeds
in cash may be acceded to the extent of US $ 1000 or its equivalent per
transaction. All encashment within one month may be treated as a single
transaction for the purpose. In all other cases, AMCs should make payment
by way of Account Payee cheque / demand draft only.
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Requests for payment in cash by foreign
visitors / Non-Resident Indians may be acceded to the extent of US $ 2000
or its equivalent. All other provisions of this paragraph remain unchanged.
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