Govt looks to address gaps used to illegally transfer forex overseas
New Delhi, Oct 3, 2025
Several scammers are easily tampering with certificates issued by chartered accountants (CAs) using easily available and simple tools like PDF editors
The government is planning to plug a loophole that several suspicious companies have exploited to transfer large sums of foreign exchange overseas. According to The Economic Times, a Central Board of Direct Taxes (CBDT) spokesperson said that a set of changes is being planned to tighten oversight.
Let's take a look at how the fraudsters transfer these funds, what changes the government has planned and how one can minimise such frauds.
What's been happening?
Several scammers are easily tampering with certificates issued by chartered accountants (CAs) using easily available and simple tools like PDF editors to deceive banks that are handling cross-border transactions. Bankers who fall for such scams are either complicit or didn't pay attention.
How is the fraud carried out?
According to the process, CA issues a genuine key remittance document Form 15CB with unique document identification number (UDIN) — an 18-digit alphanumeric code issued by an ICAI system — the client files Form 15CA, and both PDFs go to the bank for remittance.
However, the scammers manage to forge Form 15CB PDFs using editing software, altering amounts, payees, and purposes. They use fake or duplicate UDINs to make the forms appear valid.
Forged PDFs are submitted to banks, often multiple times. If bankers skip UDIN verification on the ICAI portal, the fake documents are accepted. This lapse enables large sums to be remitted fraudulently as import payments.
What will change?
According to The Economic Times, a proposal is being considered to transmit Form 15CA directly and electronically to authorised dealer banks.
This will reduce dependence on manual submissions and improve compliance.
Integrity checks for Form 15CB will be tightened.
Online UDIN validation will be introduced, enabling instant authenticity checks.
Details of the authorised dealer will also be captured in the form.
Once implemented, companies will not be able to forge a CA’s certificate, and banks will no longer be able to claim ignorance.
Preventive measures
Until the regulatory changes take effect, the following steps can help curb the ongoing fraud:
CAs should issue Form 15CB only after due diligence, verifying the Tax Residency Certificate, Form 10F, and supporting documents.
Banks should not rely solely on certificates. They must validate the UDIN, confirm the CA’s credentials, and cross-check documentation before processing remittances.
[The Business Standard]
