Guidelines regarding full fledge money changer’s vide the RBI annually publishes a master circular on a memorandum of instruction on money changing activities.Every company which intends to obtain FFMC license in India from RBI and all FFMC license holders are obliged to follow this circular and provision of Foreign Exchange Management Act, 1999.Even the entities other than banks can be a full fledge money changer, and they fall under the Authorized Dealer Category II whereas banks fall under the Authorized Dealer Category I.
Companies registered under the Companies Act 2013 are eligible to apply for the FFMC license in India.
Company registered under the companies act having a minimum net owned fund of Rs. 10 lakhs and its main object in its memorandum are money changing business can obtain a franchise license from an existing FFMC. The franchise is allowed to do only restricted money changing activities according to the master circular of RBI.
Franchisers are expected to impart training to franchisees in relation to maintenance of records and operations.
It is required to check transactions to verify that they have been done in compliance with the anti-money laundering guidelines by the concurrent auditor. In the case of compliances on the lapse, it should be put up to the board by the concurrent auditor. A certificate should be obtained at the time of preparation of the Annual Report from the Statutory Auditor on the compliance with AML guidelines.
To apply for the FFMC license application is required to be submitted along with the necessary documents to the foreign exchange department of the regional office of Reserve Bank of India where the registered office of the company is situated.
Following are the Compliance requirements as per services.