<\/span><\/h2>\n\n\n\nAs per the RBI guidelines, the Authorised Money\nChangers \u2013 FFMCs and non-bank Ads Category II must have a Concurrent Audit\nsystem in place for the foreign exchange transactions performed by the\nbusiness. <\/p>\n\n\n\n
All the single branch FFMCs which have a monthly\nturnover of more than USD 1,00,000 or its equivalent must mandatorily employ a\nsystem of monthly Authorised Money Changer Audit. <\/p>\n\n\n\n
Additionally, all the single branch FFMCs which have a\nmonthly turnover of less than USD 1,00,000 or its equivalent can employ a\nsystem of quarterly Authorised Money Changer Audit. <\/p>\n\n\n\n
When an FFMC or Non-Banking ADs Category II has\nmultiple branches, it can employ a Concurrent Audit system that covers its 80\nper cent of the transactions based on the value under the monthly Authorised\nMoney Changer Audit. The remaining 20 per cent of the transactions can be\ncovered under a value-wise quarterly Authorised Money Changer Audit.<\/p>\n\n\n\n
When it comes to the appointment of a Concurrent Audit\nfor the AMC, the business has been given complete freedom and discretion to\nmake such appointment.<\/p>\n\n\n\n
The duty of the Concurrent Auditor is to check the\nforeign exchange transactions performed by the AMC and ensure that the\ntransactions are undertaken as per the guidelines issued by the Reserve Bank of\nIndia from time to time. The Concurrent Auditor also ensures that the requisite\nformalities of maintenance of records, etc. are complied with. <\/p>\n\n\n\n
Additionally, the Concurrent Audit covers the following areas of operations of an Authorised Money Changer:<\/strong><\/p>\n\n\n\n- KYC\/AML\/CFT -based requirements.<\/li>
- Period submission of statements to the RBI.<\/li>
- Verification of the maintenance of prescribed registers.<\/li>
- Confirming that all foreign exchange transactions are recorded in the company\u2019s books and registers.<\/li>
- Ensuring that the cash is accepted within the limit of INR 50000, including the cases when structuring of transactions into a series of cash transactions below INR 50000 is done.<\/li>
- Confirming that the payments received in non-cash mode from customers are shown in the bank account statements of the Authorised Money Changer.<\/li><\/ul>\n\n\n\n
The Statutory Auditors also have the responsibility to\ncertify that the Concurrent Audit and internal control systems of the company are\nin accordance with the prescribed standards.<\/p>\n\n\n\n
The\nkey role that internal Authorised Money Changer audit plays in the operations\nof an AMC is that it ensures that the company is adhering to the KYC Policies\nand Processes. <\/p>\n\n\n\n
The\nConcurrent Auditor also checks the transactions of the company to certify that\nthe business operates in compliance with the AML, i.e. Anti-Money Laundering guidelines\nand is reporting the same to the authorities as and when the need arises.<\/p>\n\n\n\n
The\nAuthorised Money Changer must also ensure that the Audit department in the\ncompany is run by experienced professionals who have the knowledge of\napplicable policies and procedures. <\/p>\n\n\n\n
At\nthe time of preparing the Annual Report of the company with regards to its\ncompliance with the KYC, AML or CFT guidelines, a certificate must be obtained\nfrom the Statutory Auditors and kept on the record.<\/p>\n\n\n\n
In\ncase of any non-compliance, the same must be recorded and put up with the Board\nof Directors by the Concurrent Auditor. <\/p>\n\n\n\n