What changed
Earlier, corporates had to provide a Board Resolution and Power of Attorney to Authorised Money Changers for forex transactions. Now, they only need to submit a list of officials (with names, designations, and signatures) authorized by the Managing Director or CFO. The revised guidelines are detailed in the Annex to this circular.
What it means for you
This change reduces documentation burden for corporates engaging in forex through AMCs, streamlining KYC/AML processes. Banks and authorised persons must update their onboarding procedures to accept the simplified authorization. All other existing KYC/AML instructions remain unchanged, and agents/franchisees must also comply.
What you must do
- Update internal KYC/AML checklists for corporate clients dealing with AMCs to remove Board Resolution and PoA requirements.
- Train staff to accept a list of authorized officials signed by the MD/CFO as valid authorization for forex transactions.
- Ensure agents and franchisees are informed and adhere to these revised guidelines.
- Advise your Principal Officer to acknowledge receipt of this circular.
Who it affects
Authorised Money Changers (AMCs), Authorised Persons (banks, forex dealers), Corporate clients undertaking forex transactions, Agents and franchisees of Authorised Persons
What documents are now required for a corporate to establish a business relationship with an AMC?
A certified copy of the Certificate of Incorporation, Memorandum & Articles of Association, PAN Card, Telephone Bill, and a list of officials authorized by the MD/CFO (with names, designations, and signatures) are needed. Board Resolution and Power of Attorney are no longer required.
Does this circular change any other KYC/AML requirements?
No. All other instructions from the earlier circular (A.P. DIR Series Circular No. 17 dated November 27, 2009) remain unchanged. Only the documentation for corporate authorization with AMCs has been simplified.