The Presidents/Chief Executives of all

Authorized Dealers in Foreign Exchange

Dear Sir/Madam,

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

1. Attention of the Authorized Dealers is invited to FE Circular No. 04 dated October 14, 2019 regarding the above subject.
2. In order to facilitate export against advance payment, the Para 6(b)(i)(e) of the Framework for Managing Risks of Trade Based Money Laundering and Terrorist Financing has been amended as under:

“e) Guideline at (a)(c) & (d) above shall be followed while making declaration on Advance Payment Voucher (Appendix V-14). Moreover, it shall be ensured by ADs that in case of exports against advance payment, declaration made on EFE/MFE is strictly in accordance with the particulars declared on Advance Payment Voucher including the name of the consignee. In case advance payment is received from an entity other than the consignee, the ADs shall ensure the same is verified through a swift message or underlying contract and the related risks, including the risk of under/over invoicing are adequately addressed.”

3. All other terms and conditions on the subject shall remain unchanged. Further, the instructions related to advance remittance for export of fresh fruits/vegetables as contained in Para 27, Chapter 12 of Foreign Exchange Manual shall also remain unchanged.
4. Authorized Dealers are advised to bring the same to the notice of all their constituents.