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FATF-flagged countries: Enhanced KYC/AML checks for co-op banks

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2009-10/254 · issued 10 Dec 2009 · ~1 min read
Quick answerRBI directs all StCBs/DCCBs to factor in AML/CFT risks from Iran, Uzbekistan, Pakistan, Turkmenistan, and Sao Tome and Principe, per FATF's October 16, 2009 statement. Principal Officers must acknowledge receipt to the regional office.

What changed

RBI issued a follow-up circular on December 10, 2009, reinforcing its November 9, 2009 advisory on AML/CFT deficiencies in five jurisdictions. It explicitly references FATF's October 16, 2009 statement and requires banks to account for risks from those countries.

What it means for you

Co-operative banks must treat transactions linked to Iran, Uzbekistan, Pakistan, Turkmenistan, and Sao Tome and Principe as higher risk under their KYC/AML frameworks. This may trigger enhanced due diligence, stricter monitoring, and reporting obligations. Non-compliance could expose banks to regulatory action.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

State Co-operative Banks (StCBs), Central Co-operative Banks (DCCBs), Principal Officers of co-operative banks

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Which countries are flagged in this circular?

Iran, Uzbekistan, Pakistan, Turkmenistan, and Sao Tome and Principe, as per FATF's October 16, 2009 statement.

What action must the Principal Officer take?

Acknowledge receipt of this circular to the concerned RBI Regional Office.

Does this replace the November 9, 2009 circular?

No, it reinforces and supplements the earlier advisory on AML/CFT deficiencies in those jurisdictions.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1772: RPCD.CO.RF.AML.No.6548/07.02.12/2009-10 — "Know your Customer (KYC) Norms / Anti-Money Laundering (AML) Standards / Combating of Financing of Terrorism (CFT)"”
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/254 RPCD.CO.RF.AML.No.6548/07.02.12/2009-10 December 10, 2009 The Chairmen / CEOs of all State / Central Co-operative Banks Dear Sir, Know your Customer (KYC) Norms / Anti-Money Laundering (AML) Standards / Combating of Financing of Terrorism (CFT) Please refer to our letter RPCD.CO.RF.AML.No.4863/07.02.12/2009-10 dated November 9, 2009 on risks arising from the deficiencies in AML/CFT regime of Iran, Uzbekistan, Pakistan, Turkmenistan and Sao Tome and Principe.   2. Financial Action Task Force (FATF) has issued a statement dated October 16, 2009 on the subject ( copy enclosed ). Banks are accordingly advised to take into account risks arising from the deficiencies in AML/CFT regime of Iran, Uzbekistan, Pakistan, Turkmenistan and Sao Tome and Principe.  3. Please advise Principal Officer of your bank to acknowledge receipt  of this letter to our concerned Regional Office. Yours faithfully, (R.C.Sarangi) Chief General Manager Encl:  As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/254 · issued 10 Dec 2009. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5416&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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