RBI/2008-09/
A. P. (DIR Series) Circular No. 
A. P. (FL/RL Series) Circular No.

September 26, 2008

To,

All Authorized Persons in Foreign Exchange

Madam / Sir,

Memorandum of Instructions governing money changing activities

Attention of Authorized Persons is invited to the Memorandum of Instructions to Authorized Money Changers (AMCs), 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 Authorized Money Changers issued vide A. P. (DIR Series) Circular No. 18 (A.P. (FL Series) Circular No. 01) dated December 2, 2005 and subsequent amendments thereto.

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 rationalize the existing instructions pertaining to money changing activities. Accordingly, the existing instructions governing money changing activities issued to AMCs have been reviewed and consolidated. The revised instructions are appended as Annex - I and would be applicable, mutatis mutandis, to Authorized Dealers Category – II (AD Category – II), unless specific instructions to the contrary have been issued. Similarly, other relevant provisions, including the AML Guidelines as at Part-F of Annex - I, would be applicable to both AD Category - I and AD Category - II in respect of their money changing activities.

3. Authorized 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.

Yours faithfully,

(Salim Gangadharan)
Chief General Manager-in-Charge