UCBs: Updated FATF High-Risk Jurisdictions for AML/CFT
Current · Source: Reserve Bank of India · RBI/2009-10/260 · issued 17 Dec 2009 · ~1 min read
Quick answerRBI directs all AD I category Urban Co-operative Banks to factor in AML/CFT risks from Iran, Uzbekistan, Pakistan, Turkmenistan, and Sao Tome and Principe, per FATF's October 2009 statement. Compliance officers must acknowledge receipt to the regional office.
The rule, in the simplest words
If a customer or transaction involves Iran, Uzbekistan, Pakistan, Turkmenistan, or Sao Tome and Principe, the bank must do extra checking (due diligence) to see if it could be linked to money‑laundering or terrorism (AML/CFT).
The person in charge of following the rules (the compliance officer or principal officer) must send a note to the RBI regional office saying they received this circular.
All banks should update their risk‑assessment tools and customer‑screening procedures to include these five countries.
The KYC (Know Your Customer) and AML/CFT teams need to be briefed on the new guidance so they can apply it in their daily work.
How it plays out — a real example
Rohan, a branch manager at an Urban Co‑operative Bank in Jaipur, receives the RBI circular. He tells his team to double‑check any new loan applications from customers with ties to Pakistan and emails the compliance officer to confirm receipt of the circular, making sure everyone follows the updated rules.
What changed
RBI updated its earlier October 28, 2009 circular on AML/CFT risks by incorporating FATF's latest October 16, 2009 statement. The list of high-risk jurisdictions remains the same: Iran, Uzbekistan, Pakistan, Turkmenistan, and Sao Tome and Principe. UCBs are now explicitly advised to account for these risks in their KYC/AML processes.
What it means for you
Urban Co-operative Banks must enhance due diligence for transactions and relationships involving these five countries. This reinforces the need for robust AML/CFT controls to avoid regulatory penalties. Lenders should review their customer risk profiling and transaction monitoring systems to align with FATF's updated guidance.
What you must do
Update your AML/CFT risk assessment to include the five specified jurisdictions.
Ensure enhanced due diligence for any customer or transaction linked to Iran, Uzbekistan, Pakistan, Turkmenistan, or Sao Tome and Principe.
Have your Compliance Officer or Principal Officer acknowledge receipt of this circular to the respective RBI Regional Office.
Brief your KYC/AML teams on FATF's October 2009 statement and its implications.
Who it affects
All AD I Category Urban Co-operative Banks, Compliance Officers and Principal Officers of UCBs, KYC/AML operations teams in UCBs
❓ Common questions
Which jurisdictions are flagged in this circular?
The circular highlights AML/CFT regime deficiencies in Iran, Uzbekistan, Pakistan, Turkmenistan, and Sao Tome and Principe, as per FATF's October 2009 statement.
What action is required from the Compliance Officer?
The Compliance Officer or Principal Officer must send an acknowledgment of receipt of this circular to the concerned RBI Regional Office.
Does this replace the earlier October 2009 circular?
No, it supplements the October 28, 2009 circular by incorporating FATF's updated statement. The list of high-risk countries remains unchanged.
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/260
UBD (PCB) CO.BPD. Cir. No. 33 /14.01.062/2009-10
December 17, 2009
The Chief Executive Officers of
All AD I Category Urban Co-operative Banks
(As per List enclosed)
Dear Sir / Madam,
Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Standards / Combating of Financing of Terrorism (CFT)
Please refer to our circular UBD (PCB) CO.BPD.Cir.No.18/14.01.062/2009-10 dated October 28, 2009 on risks arising from the deficiencies in AML / CFT regime of Uzbekistan, Iran, Pakistan, Turkmenistan, Sao Tome and Principe.
2. The Financial Action Task Force (FATF) has issued a further Statement on October 16, 2009 on the subject ( copy enclosed ). UCBs 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. The Compliance Officer/Principal Officer of the bank should acknowledge receipt of this circular to our Regional Office concerned.
Yours faithfully
(Monisha Chakraborty)
Deputy General Manager
Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/260 · issued 17 Dec 2009. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (All AD I Category Urban Co-operative Banks, Compliance Officers and Principal Officers of UCBs, KYC/AML operations teams in UCBs), your first concrete step on “UCBs: Updated FATF High-Risk Jurisdictions for AML/CFT” is: “Update your AML/CFT risk assessment to include the five specified jurisdictions.” (RBI issued this 17 Dec 2009).
Circular: RBI/2009-10/260 -- UCBs: Updated FATF High-Risk Jurisdictions for AML/CFT
Issued: 17 Dec 2009
Action required: Update your AML/CFT risk assessment to include the five specified jurisdictions.
Action required: Ensure enhanced due diligence for any customer or transaction linked to Iran, Uzbekistan, Pakistan, Turkmenistan, or Sao Tome and Principe.
Action required: Have your Compliance Officer or Principal Officer acknowledge receipt of this circular to the respective RBI Regional Office.
Action required: Brief your KYC/AML teams on FATF's October 2009 statement and its implications.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5423&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.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.