Does a franchisee need to adhere to KYC/AML/CFT Guidelines? - FEMA - FAQ - FEMA

Ans. Franchisees are required to strictly adhere to the AML / KYC/ CFT guidelines, as applicable to ADs Category I Banks / ADs Category II / FFMCs. Note: No licence for appointment of franchisees will be issued to any FFMC / non-bank AD Category - II, against whom any major DoE / DRI / CBI / Police case is pending. In case where any FFMC / non-bank AD Category - II has received one-time approval for appointing franchisees and subsequent to the date of approval, any DoE / DRI / CBI / Police case is filed, the FFMC / non-bank AD Category - II should not appoint any further franchisees and bring the matter to the notice of the Reserve Bank immediately. A decision will be taken by the Reserve Bank regarding allowing the FFMC / non-bank AD Category - II to appoint franchisees.