KYC/AML Norms: Board Resolution No Longer Needed for Forex with AMCs
Current · Source: Reserve Bank of India · RBI/2013-14/455 · issued 20 Jan 2014 · ~2 min read
Quick answerRBI has removed the requirement for corporates to submit a Board Resolution and Power of Attorney when dealing with Authorised Money Changers. Instead, a list of authorized officials signed by the MD/CFO will suffice, simplifying KYC/AML compliance for forex transactions.
The rule, in the simplest words
Corporates no longer need to provide a Board Resolution when dealing with Authorised Money Changers (AMCs) for forex transactions.
A list of authorized officials signed by the Managing Director or CFO is now sufficient for forex transactions.
Banks and AMCs must update their onboarding procedures to accept the simplified authorization.
How it plays out — a real example
Rahul, a KYC & compliance officer in Indore, is happy to see the simplified authorization process for corporate clients. He no longer needs to verify a Board Resolution, making his job easier and faster. He can now focus on verifying the list of authorized officials signed by the Managing Director or CFO, ensuring that the corporate client's forex transactions are compliant with KYC/AML norms.
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
❓ Common questions
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.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/455
A.P. (DIR Series) Circular No.97
January 20, 2014
To,
All Authorised Persons
Madam/ Sir,
Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards / Combating the Financing of Terrorism (CFT) Obligation of Authorised Persons under Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009 Money changing activities
Attention of Authorised Persons is invited to F-Part-II of the Annex to the A.P. (Dir Series) Circular No. 17 [A.P. (FL/RL Series) Circular No. 04] dated November 27, 2009 , as amended from time to time.
2. Based on several representations received from Authorised Money Changers (AMCs), regarding difficulties in submitting Resolution of the Board of Directors for undertaking foreign exchange transactions with an AMC and also Power of Attorney granted to its officials to conduct forex transactions on behalf of the company, it has been decided to rationalise the same. Accordingly, the requirement of Resolution of the Board of Directors is being done away with and a corporate may now submit to the AMC a list of officials with names and signatures authorized by the Managing Director / Chief Financial Officer of the company toconduct forex transactions on its behalf. The amended instructions are given in the Annex .
3. All the other instructions contained in the A.P. (DIR Series) Circular No. 17 [A.P. (FL/RL Series) Circular No. 04] dated November 27, 2009, as amended from time to time shall remain unchanged.
4. Authorised Persons may bring the contents of this circular to the notice of their constituents concerned.
5. These guidelines are also applicable mutatis mutandis to all agents/ franchisees of Authorised Persons and it will be the sole responsibility of the franchisers to ensure that their agents / franchisees also adhere to these guidelines.
6. Please advise your Principal Officer to acknowledge receipt of this circular letter.
7. The directions contained in this Circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999)and also under the, Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009 and Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005 as amended from time to time and are without prejudice to permission /approvals, if any, required under any other law.
Yours faithfully,
Rudra Narayan Kar
Chief General Manager-in-Charge
Annex
[Annex to A.P. (DIR Series) Circular No.97 dated January 20, 2014]
Extant Guidelines
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/455 · issued 20 Jan 2014. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (Authorised Money Changers (AMCs), Authorised Persons (banks, forex dealers), Corporate clients undertaking forex transactions, Agents and franchisees of Authorised Persons), your first concrete step on “KYC/AML Norms: Board Resolution No Longer Needed for Forex with AMCs” is: “Update internal KYC/AML checklists for corporate clients dealing with AMCs to remove Board Resolution and PoA requirements.” (RBI issued this 20 Jan 2014).
Circular: RBI/2013-14/455 -- KYC/AML Norms: Board Resolution No Longer Needed for Forex with AMCs
Issued: 20 Jan 2014
Action required: Update internal KYC/AML checklists for corporate clients dealing with AMCs to remove Board Resolution and PoA requirements.
Action required: Train staff to accept a list of authorized officials signed by the MD/CFO as valid authorization for forex transactions.
Action required: Ensure agents and franchisees are informed and adhere to these revised guidelines.
Action required: Advise your Principal Officer to acknowledge receipt of this circular.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8700&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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