The President / Chief Executives

All Authorized Dealers in Foreign Exchange

Dear Sir/Madams,

Revision in Framework for Managing Risks of Trade Based Money Laundering and Terrorist Financing

1. Attention of Authorized Dealers (ADs) is invited towards the “Framework for Managing Risks of Trade Based Money Laundering and Terrorist Financing” issued on October 14, 2019 vide FE Circular No. 4 of 2019.
2. With a view to further strengthen the effectiveness of the framework and align it with the evolving business requirements and emerging risks, it has been decided to issue the revised Framework for Managing Risks of Trade Based Money Laundering and Terrorist Financing, which is attached herewith.
3. ADs are advised to update their policies, processes and systems in accordance with the requirements of the revised framework to ensure meticulous compliance by October 31, 2025.
4. Failure to comply with these instructions may attract enforcement action against the delinquent ADs under the relevant law(s).