{"id":1410,"date":"2021-01-18T11:41:16","date_gmt":"2021-01-18T11:41:16","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=1410"},"modified":"2021-01-18T11:46:20","modified_gmt":"2021-01-18T11:46:20","slug":"pre-post-registration-of-ffmc-compliances","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/pre-post-registration-of-ffmc-compliances\/","title":{"rendered":"FFMC Compliances: A Guide on Pre &#038; Post Registration Compliances"},"content":{"rendered":"\n<p>In India, the utmost authority to deal\nwith foreign currencies, coins, and forex is only with the Money Changers or\nthe entities who are having Full Fledged Money Changer License as per section\n10 of the FEMA 1999. The said license is given by the Apex Bank after the due\ninquiry and verification. That means in the case of default the same is liable\nto be forfeited or revoked. However, it is necessary for every license holder\nto duly comply with FFMC Compliances, else the same will result in the levy of\nthe hefty fines and penalties.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4dd169de7d9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4dd169de7d9\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/pre-post-registration-of-ffmc-compliances\/#Concept_of_Full_Fledged_Money_Changer\" title=\"Concept of Full Fledged Money\nChanger\">Concept of Full Fledged Money\nChanger<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/pre-post-registration-of-ffmc-compliances\/#Different_Types_of_Full_Fledged_Money_Changers\" title=\"Different Types of Full Fledged\nMoney Changers\">Different Types of Full Fledged\nMoney Changers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/pre-post-registration-of-ffmc-compliances\/#Pre-Registration_FFMC_Compliances\" title=\"Pre-Registration FFMC Compliances \">Pre-Registration FFMC Compliances <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/pre-post-registration-of-ffmc-compliances\/#Post_Approval_Requirements_by_FFMCs\" title=\"Post Approval Requirements by FFMCs\">Post Approval Requirements by FFMCs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/pre-post-registration-of-ffmc-compliances\/#FFMC_Compliances_Concerning_Maintenance_of_Registers\" title=\"FFMC Compliances Concerning\nMaintenance of Registers\">FFMC Compliances Concerning\nMaintenance of Registers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/pre-post-registration-of-ffmc-compliances\/#Annual_FFMC_Compliances_for_Authorised_Money_Changers\" title=\"Annual FFMC Compliances for\nAuthorised Money Changers\">Annual FFMC Compliances for\nAuthorised Money Changers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/pre-post-registration-of-ffmc-compliances\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Full_Fledged_Money_Changer\"><\/span>Concept of Full Fledged Money\nChanger<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term \u201cFull Fledged Money Changer\u201d\nsignifies a person or an entity that is having a valid FFMC License issued by\nthe authorities. The same is issued to grant permission to deal in forex and\ncurrencies.<\/p>\n\n\n\n<p>Further, it shall be relevant to note that RBI and <strong>section 10 of FEMA 1999<sup><a href=\"https:\/\/indiankanoon.org\/doc\/409653\/\" class=\"text-primary\"><strong><em>[1]<\/em><\/strong><\/a><\/sup><\/strong> act as the governing force and regulatory law for same respectively.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_Types_of_Full_Fledged_Money_Changers\"><\/span>Different Types of Full Fledged\nMoney Changers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the provision of the Foreign Exchange Management Act 1999, the different types of full fledged money changers prevalent in India are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Different-Types-of-Full-Fledged-Money-Changers..png\" alt=\"Types of Full Fledged Money Changers\" class=\"wp-image-1412\" width=\"451\" height=\"392\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Different-Types-of-Full-Fledged-Money-Changers..png 846w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Different-Types-of-Full-Fledged-Money-Changers.-300x262.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Different-Types-of-Full-Fledged-Money-Changers.-768x670.png 768w\" sizes=\"(max-width: 451px) 100vw, 451px\" \/><\/figure><\/div>\n\n\n\n<ol><li>Authorised\nMoney Changer Category I Banks;<\/li><li>Authorised\nMoney Changer Category II;<\/li><li>Full\nFledged Money Changers;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pre-Registration_FFMC_Compliances\"><\/span>Pre-Registration FFMC Compliances <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The pre-registration FFMC Compliances for an entity to obtain FFMC Registration from RBI are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Pre-Registration-FFMC-Compliances.png\" alt=\"Pre-Registration FFMC Compliances \" class=\"wp-image-1413\" width=\"445\" height=\"534\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Pre-Registration-FFMC-Compliances.png 724w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/Pre-Registration-FFMC-Compliances-249x300.png 249w\" sizes=\"(max-width: 445px) 100vw, 445px\" \/><\/figure><\/div>\n\n\n\n<ol><li>Registration\nunder the Companies Act 2013;<\/li><li>Should\nhave at least Rs 25 lakhs as Net Owned Funds to operate a Single Branch;<\/li><li>Should\nhave at least Rs 50 lakhs as Net Owned Funds to operate Multiple Branch;<\/li><li>Object\nClause of the MOA must state the Intention to carry out Forex Trading\nActivities;<\/li><li>Directors\nmust not have any pending case with DRI (Department of Revenue Intelligence);<\/li><li>After\nobtaining FFMC Registration, the entity must start operations within 6 months;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Post_Approval_Requirements_by_FFMCs\"><\/span>Post Approval Requirements by FFMCs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The post approval requirements by FFMCs\nare as follows:<\/p>\n\n\n\n<ol><li>All the directors of the company need to submit the copy of the documents as follows with the Apex Bank:<\/li><li>Possession Certificate;<\/li><li>Lease Agreement;<\/li><li>Shop and Establishment License;<\/li><li>The directors of the company need to adhere to all the circulars, guidelines, and timely directions issued by the Apex Bank;<\/li><li>The license holder requires to display a copy of <strong><a href=\"https:\/\/swaritadvisors.com\/ffmc-license\" class=\"text-primary\">FFMC License<\/a><\/strong> at every business place;<\/li><li>To carry out forex trading in a smooth and hassle free manner, the licensee requirement to implement Concurrent Audit Mechanism;<\/li><li>Every\nlicensee company requires to submit its Audited Balance Sheet and Financial\nStatements at the Regional Office of RBI;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FFMC_Compliances_Concerning_Maintenance_of_Registers\"><\/span>FFMC Compliances Concerning\nMaintenance of Registers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After obtaining the Money Changer License from the Reserve Bank of India, the licensee company needs to abide by the FFMC Compliances concerning the Maintenance of Registers as follows:<\/p>\n\n\n\n<table width=\"100%\">\n<tbody>\n<tr>\n<td width=\"18%\">\n<p><strong>Form No<\/strong><\/p>\n<\/td>\n<td width=\"81%\">\n<p><strong>Reasons<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"18%\">\n<p><strong>FLM- 1<\/strong><\/p>\n<\/td>\n<td width=\"81%\">\n<p>For the purpose of summarizing the financial records or particulars concerning foreign currency, notes, coins on a daily basis.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"18%\">\n<p><strong>FLM- 2<\/strong><\/p>\n<\/td>\n<td width=\"81%\">\n<p>For the purpose of summarizing the records of cheques received by thetravelers.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"18%\">\n<p><strong>FLM- 3<\/strong><\/p>\n<\/td>\n<td width=\"81%\">\n<p>For the purpose of summarizing the records concerning the purchase of foreign currencies and coins from the general public.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"18%\">\n<p><strong>FLM- 4<\/strong><\/p>\n<\/td>\n<td width=\"81%\">\n<p>For the purpose of summarizing the records concerning the purchase of foreign currency and coins from the Authorized Money Changers (AMCs).<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"18%\">\n<p><strong>FLM- 5<\/strong><\/p>\n<\/td>\n<td width=\"81%\">\n<p>For the purpose of summarizing the details and particulars concerning the sale of foreign currency, notes\/coins or traveler\u2019scheques to the public.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"18%\">\n<p><strong>FLM- 6<\/strong><\/p>\n<\/td>\n<td width=\"81%\">\n<p>For the purpose of summarizing the records pertaining to the sale of foreign currency notes or coins and traveler\u2019s cheques to the Overseas Banks and Authorized Money Changers.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"18%\">\n<p><strong>FLM- 7<\/strong><\/p>\n<\/td>\n<td width=\"81%\">\n<p>For the purpose of summarizing the records pertaining to the sale of traveler\u2019s cheques to AMCs (Authorised Money Changers), Authorised Dealer, and Full-Fledged Money Changer License Holders.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Annual_FFMC_Compliances_for_Authorised_Money_Changers\"><\/span>Annual FFMC Compliances for\nAuthorised Money Changers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Annual FFMC Compliances for\nAuthorised Money Changers are as follows:<\/p>\n\n\n\n<ol><li>An\nAMC must ensure the Proper Maintenance of the Registers as prescribed with\nregard to Travelers\u2019 Cheque, Foreign Currency Logbooks;<\/li><li>Must\nmakeMonthly Submission of the Statements regarding Trading of Foreign Currency\nto RBI;<\/li><li>Must\nmake Monthly Submission of the Receipts, together with the Purchase of the US\n$10000 or above transaction, both at the Foreign Exchange Department and RBI\u2019s\nRegional Office;<\/li><li>The\nLicensee must submit the Quarterly Statement concerning Foreign Currency\nAccount on a timely basis;<\/li><li>All\nthe registered AMCs must furnish their Audited Balance Sheet and Financial\nStatements, together with the Certificate issued by the Statutory Auditor\nconcerning Net Owned Funds on the mentioned Due Date;<\/li><li>An\nAMC (Authorised Money Changer) must implement such an Auditing Mechanism which\nis both robust and transparent;<\/li><li>All\nthe registered AMCs must submit their Annual Statements at the FED\u2019s (Foreign\nExchange Department) Regional Office without any delay;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, to start a business that deals\nwith foreign currencies, coins, and forex, it is mandatory to obtain FFMC\nRegistration from RBI. However, if we talk about the FFMC Compliances, it must\nbe taken into consideration that the same is not that tough and intricate as it\nseems. <\/p>\n\n\n\n<p>That means the same is easier than obtaining FFMC Registration from RBI. At <strong><a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/\">Swarit Advisors<\/a><\/strong>, our experts in the field of RBI and FEMA will not only guide with the mandatory FFMC Compliances but will assist you with the process and way to comply with the above mentioned FFMC Compliances.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/ffmc-registration-from-rbi\">FFMC Registration from RBI: A Complete Guide on the Process<\/a><\/mark><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In India, the utmost authority to deal with foreign currencies, coins, and forex is only with the Money Changers or the entities who are having Full Fledged Money Changer License as per section 10 of the FEMA 1999. The said license is given by the Apex Bank after the due inquiry and verification. That means [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1411,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[187],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1410"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=1410"}],"version-history":[{"count":8,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1410\/revisions"}],"predecessor-version":[{"id":1422,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1410\/revisions\/1422"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/1411"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}