Money Changer Compliance
An authorized money exchanger allowed to purchase foreign currency from non-residents visiting India & residents and to sell foreign currency for private and business travel purposes only are called full fledge money changers.
Under section 10 of (FEMA) Foreign Exchange Management Act 1999, Reserve Bank authorises Authorised Money Changer (AMC) who can undertake the money changing business. Without possession of a valid money changer’s licence issued by RBI no person shall carries on money changing business.
Mandatory Compliance for Money Changer Licence
a. Maintain daily summary and balance book (foreign currency notes/ coins transacted) in form FLM 1
b. Maintain transaction done through travellers cheques (daily summery/ balance book) in form FLM 2
c. Maintain register of foreign currencies from public inform FLM 3
d. Maintain register of purchase of foreign currency notes/ coins form authorized money changers in form FLM 4
e. Maintain register of sale of foreign currency (coins and notes and travellers cheque) to public in form FLM 5
f. Maintain sale of foreign currency (notes / coins)to authorized dealer/ full fledge money changers in form FLM 6
g. Maintain register of surrendered traveller’s cheque to authorized dealers/ authorized money changers in form FLM 7
h. By 15th of every month submit cash transaction report to financial intelligence unit of India. However individual transaction below INR 50000 need not to be submitted in the report
i. Within 7 days of happening of suspicious transaction, report shall be prepared and submitted about those suspicious transaction
j. Authorized Money Changers should send a monthly consolidated statement to the office of the Reserve Bank which issued the license for all its offices regarding the selling and purchase of foreign currency notes in the form FLM 8 (Annex-XI) in order to arrive not later than the 10th of the following month.
k. An Annual Report should be submitted by all Authorized Money Changerss to the respective Foreign Exchange Department Regional Offices, Reserve Bank which granted the licenses within one month of the end of the financial year, providing details of the amount written off during the financial year, in the format set out in Annex XIV.