What changed
RBI issued a circular reminding AD banks that LRS remittances are not permitted to FATF-identified NCCTs (Cook Islands, Egypt, Guatemala, Indonesia, Myanmar, Nauru, Nigeria, Philippines, Ukraine) and advising them to keep an updated list from FATF's website.
What it means for you
Banks must proactively monitor FATF's NCCT list and block LRS transactions to those jurisdictions. This adds a compliance layer for remittance processing, requiring regular updates and customer communication to avoid inadvertent violations.
What you must do
- Designate a team to periodically check FATF's website for the latest NCCT list.
- Update internal systems and branch guidelines to block LRS remittances to listed countries.
- Communicate the restriction to customers and frontline staff handling remittances.
- Maintain audit trails of list updates and transaction blocks for regulatory review.
Who it affects
AD banks handling LRS transactions, Branch staff processing resident individual remittances
Which countries were listed as NCCTs in this circular?
The circular listed Cook Islands, Egypt, Guatemala, Indonesia, Myanmar, Nauru, Nigeria, Philippines, and Ukraine as non-cooperative countries.