Paragraph No. [ cf. F-Part-I [Annex to A.P. (DIR Series) Circular No.17 {A.P. (FL/RL Series) Circular No. 4 dated November 27, 2009]

Existing Instructions

Amended Instructions

4.4 e (i) Purchase of foreign exchange from customers

For purchase of foreign currency notes and/ or Travellers’ Cheques from
customers for any amount less than US $ 200 or its equivalent, photocopies of the identification document need not be obtained. However, full details of the identification document should be maintained.

For purchase of foreign currency notes and/ or Travellers’ Cheques from
customers for any amount less than Rs. 50,000/-, or its equivalent, photocopies of the identification document need not be obtained. However, full details of the identification document should be maintained.

If the Authorised Person has reason to believe that a customer is intentionally structuring a transaction into a series of transactions below the threshold of Rs.50000/-, the A.P. should verify identity and address of the customer and also consider filing a suspicious transaction report to FIU-IND.  

4.4 e (ii)

For purchase of foreign currency notes and/ or Travellers’ Cheques from
customers for any amount in excess of US $ 200 or its equivalent, the identification documents, as mentioned at (F-Part-II) annexed to this Circular, should be verified and a copy retained.

For purchase of foreign currency notes and/ or Travellers’ Cheques from
customers for any amount equal to or in excess of Rs.50,000/-, or its equivalent, the documents, as mentioned at (F-Part-II) annexed to the A.P. (DIR Series) Circular No.17 {A.P.(FL/RL Series) Circular No.4} dated November 27, 2009, should be verified and copies retained.

4.4  e (vi)

In case of any suspicion of money laundering or terrorist financing, irrespective of the amount involved, enhanced Customer Due Diligence (CDD) should be applied.

In case of any suspicion of money laundering or terrorist financing, irrespective of the amount involved, enhanced Customer Due Diligence (CDD) should be applied.

Whenever there is suspicion of money laundering or terrorist financing or when other factors give rise to a belief that the customer does not, in fact, pose a low risk, APs should carry out full scale Customer Due Diligence (CDD) before undertaking any transaction for the customer.

4.13 (i) Maintenance of records of transactions

APs should introduce a system of maintaining proper record of transactions prescribed under Rule 3, as mentioned below:

a) all cash transactions of the value of more than Rupees Ten Lakh or its equivalent in foreign currency;

b) all series of cash transactions integrally connected to each other which have been valued below Rupees Ten Lakh or its equivalent in foreign currency where such series of transactions have taken place within a month; and

c) all suspicious transactions whether or not made in cash and by way of as mentioned in the Rules.

APs should introduce a system of maintaining proper record of transactions prescribed under Rule 3, as mentioned below:

a)  all cash transactions of the value of more than Rupees Ten Lakh or its equivalent in foreign currency;

b) all series of cash transactions integrally connected to each other which have been valued below Rupees Ten Lakh or its equivalent in foreign currency where such series of transactions have taken place within a month and the aggregate value of such transactions exceeds Rupees Ten Lakh;

c) all transactions involving receipts by non-profit organisations of value more than Rupees ten lakh or its equivalent in foreign currency [Ref: Government of India Notification dated November 12, 2009- Rule 3,sub-rule (1) clause (BA) of PML Rules];

d) all cash transactions where forged or counterfeit currency notes or bank notes have been used as genuine and where any forgery of a valuable security or a document has taken place facilitating the transaction; and

e) All suspicious transactions whether or not made in cash and by way of as mentioned in the Rules.