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July 2010

A.P. (DIR Series) Circular No. 54, dated 26-5-2010 — Remittance towards partici-pation in lottery, money circulation schemes, other fictitious offers of cheap funds, etc.

By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Tarun Ghia, Brijesh Cholera, Pratik Mehta | Chartered Accountants
Sejal Vasa | Company Secretary
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Part C : RBI/FEMA

60 A.P. (DIR Series) Circular No. 54, dated  26-5-2010 —
Remittance towards partici-pation in lottery, money circulation schemes, other
fictitious offers of cheap funds, etc.

This Circular reiterates that remittance from India in any
form towards participation in lottery schemes existing under different names,
like money circulation scheme or remittances for the purpose of securing prize
money/awards, etc. is prohibited under FEMA.

It also clarifies that any person resident in India
collecting and effecting/remitting such payments directly/indirectly outside
India will be liable for prosecution for contravention of FEMA as well as
regulations relating to Know Your Customer (KYC) norms/Anti Money Laundering
(AML) standards.

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