KYC obligations of FFMC's

Under the current FEMA & the erstwhile FERA regimes, read with the directions issued by the RBI from time to time, the RBI offers licences to a class of Authorised Dealers (AD) known as Full Fledged Money Changers (FFMC).

The purpose of these FFMC's is primarily to dispense foreign exchange for the purpose of tourism and to provide for easy access to foreign exchange to residents of the country.

These FFMC however have to adhere to strict "Know Your Customer" (KYC) requirements, the purpose of which is to maintain detailed records of foreign currency dispensed by them as well as ensuring that FFMC's possess the true identity of the beneficiary of the Transaction.