Guidelines on Money Changing Activities

Subject: Memorandum of Instructions governing money changing activities

[Ref: AP(DIR Series) Cir. 57 dated 09 March 2009

Attention of Authorised Persons is invited to the Memorandum of Instructions to Authorised Money Changers (AMCs), (RBI) issued vide A. P. (DIR Series) Circular No. 43 (A.P. (FL Series) Circular No. 1) dated November 12, 2002 and other relevant instructions issued from time to time, Anti-Money Laundering Guidelines (AML Guidelines) for Authorised Money Changers issued vide A. P. (DIR Series) Circular No. 39 (A.P. (FL Series) Circular No. 02) dated June 26, 2006.

2. In view of the growth in money changing activities and issuance of several instructions including AML Guidelines on money changing activities, there was a need to rationalise the existing instructions pertaining to money changing activities. Accordingly, the instructions governing money changing activities issued to AMCs, duly reviewed are enclosed (Annex).

3. Authorised persons may bring the contents of this circular to the notice of their constituents concerned.

4. 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) and non-compliance with the guidelines would attract penal provisions of Section 11(3) of the Act ibid.