1. FED,CO,RBI FEMA EVENT AT BHILWARA 26 AUGUST 2013 FULL FLEDGED MONEY CHANGERS(FFMC)

2. Money Changing Activities in India Authorised Persons under Section 10(1) of FEMA, 1999 : ADs Cat-I, ADs Cat-II, ADs Cat-III, FFMCs. FFMCs: Should be a corporate body. Minimum NOF of INR 25/50 lakh for single/multiple branch Fit & Proper Criteria for FFMCs, Non-bank ADs Cat-II and their directors Empowered Committee at RO level for licencing/ renewal of FFMCs 3. Agents/ Franchisees of FFMCs ADs Cat-I, ADs Cat-II, FFMCs can appoint agents/ franchisees which can undertake restricted money-changing activities. Franchisees: Minimum NOF of INR 10 lakh Due diligence of franchisees by franchisers Franchisees should display the names of their franchisers, exchange rates and they are authorised only to purchase foreign currency. 4. Operational Instructions Mandatory production of CDF Sale of forex: Private visit: USD 10,000 per financial year, Business visit: USD 25, 000 per visit. ADs Cat-II can issue forex pre-paid cards for travel purpose Reconversion of INR to Fcy from non-residents: No Encashment certificate upto INR 10,000 Rates of Exchange: Should be in alignment with ongoing market rates Display of Exchange Rate: Card rates by 10:30 5. O Operational Instructions Foreign Currency Balances: No idle balances Export of Fcy: General permission to FFMCs thorough an AD Cat-I bank Import of Fcy by FFMCs through an AD Cat-I bank: specific permission from RBI Write off of Fcy: up to USD 2000 per financial year- general permission, anything above-specific permission from RBI. Registers and books of accounts: FLM-1 to 7 Statements to RBI: FLM-8 (monthly), Details of Fcy accounts (quarterly), amounts written off(annual) 6. O Operational Instructions Concurrent Audit: Single branch FFMCs with turnover of more than USD 1 lakh and all multiple branch FFMCs: monthly Single branch FFMCs with turnover of less than USD 1 lakh: quarterly Temporary money changing activities: with specific permission from RBI Opening of Fcy accounts: with specific permission from RBI for specific purposes Maintenance of minimum NOF on an ongoing basis KYC/AML/CFT Guidelines 7. KYC / AML guidelines APs brought under the ambit of PMLA, 2009 (amendment) wef June 1, 2009 The objective is to prevent the system of purchase and / or sale of foreign currency notes / Travelers' cheques by AP 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. 8. No transaction is conducted in anonymous or fictitious/benami name(s) Maintaining and updating the risk profile of every customer Documentation requirements and other information to be collected in respect of different categories of customers depending on perceived risk and keeping in mind the requirements of Prevention of Money Laundering Act Not to undertake any transaction where the AP is unable to apply appropriate customer due diligence Cont.. 9. Cont.. Details of identification documents- for purchase of forex by customers less than INR 50000, for amounts equal to or more than INR 50000, properly verified identification documents to be kept. Encashment of forex- payment to residents in INR cash up to US $1000, foreign visitors/ NRIs up to US $3000 (all transactions within 30 days as single transaction). Production of CDF is mandatory. For sale of Forex, passport should be insisted and copy of identification document should be kept.