What changed
RBI issued a further circular on December 10, 2009, referencing its earlier letter of November 16, 2009, and incorporating FATF's October 16, 2009 statement. The list of countries with deficient AML/CFT regimes is: Iran, Uzbekistan, Pakistan, Turkmenistan, and Sao Tome and Principe.
What it means for you
RRBs must continue to apply enhanced due diligence for transactions or relationships involving these five countries. This is a compliance reminder to align with global FATF standards and mitigate money laundering and terrorist financing risks.
What you must do
- Update your AML/CFT risk assessment to include the specified countries.
- Ensure your Principal Officer acknowledges receipt of this circular to the concerned RBI regional office.
- Review and strengthen KYC/AML procedures for any exposure to these jurisdictions.
Who it affects
Regional Rural Banks (RRBs), Principal Officers of RRBs, Compliance and AML teams at RRBs
Which countries are flagged in this circular?
Iran, Uzbekistan, Pakistan, Turkmenistan, and Sao Tome and Principe are identified as having deficiencies in their AML/CFT regimes.
What action is required from RRBs?
RRBs must consider the risks from these countries in their AML/CFT framework and have the Principal Officer acknowledge receipt to the RBI regional office.