Module: | MODULE A: INTERNATIONAL BANKING
Q31: Consider the following statements concerning the operational reporting guidelines for daily foreign exchange transactions:
Statement 1: Authorised Dealer Category 2 banks and Full-Fledged Money Changers must submit their daily transaction returns directly on the Centralised Information Management System portal.
Statement 2: Authorised Dealer Category 2 banks are permitted to verify the Permanent Account Number based cumulative remittances of a resident individual on the central portal before facilitating a new transaction.
Statement 3: If a reporting entity registers zero transactions on a given working day, they are exempt from reporting and do not need to file a nil return.
Which of the statements given above are correct?
Statement 2: Authorised Dealer Category 2 banks are permitted to verify the Permanent Account Number based cumulative remittances of a resident individual on the central portal before facilitating a new transaction.
Statement 3: If a reporting entity registers zero transactions on a given working day, they are exempt from reporting and do not need to file a nil return.
Which of the statements given above are correct?
✅ Correct Answer: A
The correct answer is A. Statements 1 and 2 are correct, while Statement 3 is incorrect.
The regulatory reporting architecture for foreign exchange requires strict oversight.
Historically, smaller money changers had to route their transaction reports through larger parent banks.
To enhance real-time surveillance, the central bank structurally mandated that these entities must integrate directly with the central data portal.
This allows them to independently verify a customer's cumulative tax identification limits before authorizing new foreign exchange drawals, validating Statements 1 and 2. However, regulatory compliance operates on a strict negative-confirmation basis.
If no transactions occur, the entity cannot simply ignore the portal; they must formally file a nil return on the next working day.
Therefore, Statement 3 is incorrect.
The regulatory reporting architecture for foreign exchange requires strict oversight.
Historically, smaller money changers had to route their transaction reports through larger parent banks.
To enhance real-time surveillance, the central bank structurally mandated that these entities must integrate directly with the central data portal.
This allows them to independently verify a customer's cumulative tax identification limits before authorizing new foreign exchange drawals, validating Statements 1 and 2. However, regulatory compliance operates on a strict negative-confirmation basis.
If no transactions occur, the entity cannot simply ignore the portal; they must formally file a nil return on the next working day.
Therefore, Statement 3 is incorrect.