HomeCirculars › RBI/2009-10/433

RBI Circular on FATF-Identified High-Risk Jurisdictions for RRBs

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2009-10/433 · issued 27 Apr 2010 · ~1 min read
Quick answerRBI directs RRBs to consider AML/CFT risks from Iran, Angola, DPRK, Ecuador, Ethiopia, Pakistan, Turkmenistan, and Sao Tome and Principe as per FATF's February 18, 2010 statement, via circular dated April 27, 2010.

What changed

RBI issued a circular on April 27, 2010, referencing FATF's February 18, 2010 statement, which categorizes jurisdictions with strategic AML/CFT deficiencies into three groups: Iran (subject to countermeasures), Angola, DPRK, Ecuador, Ethiopia (no action plan committed), and Pakistan, Turkmenistan, Sao Tome and Principe (previously identified deficiencies remain). This updates the earlier December 10, 2009 circular.

What it means for you

RRBs must now assess and mitigate heightened money laundering and terrorist financing risks when dealing with entities or transactions linked to these jurisdictions. This may require enhanced due diligence, transaction monitoring, or reporting to ensure compliance with AML/CFT standards. Non-compliance could expose banks to regulatory action and reputational damage.

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

Regional Rural Banks (RRBs), Principal Officers of RRBs, AML/CFT compliance teams

❓ Common questions

Regulatory timeline

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

What are the three groups of jurisdictions mentioned in the FATF statement?

Group 1: Iran (subject to countermeasures). Group 2: Angola, DPRK, Ecuador, Ethiopia (no action plan committed). Group 3: Pakistan, Turkmenistan, Sao Tome and Principe (previously identified deficiencies remain).

What should RRBs do if they have transactions with these countries?

RRBs must consider the AML/CFT risks from these jurisdictions and apply appropriate measures, such as enhanced due diligence or countermeasures, especially for Iran.

Is acknowledgment of this circular mandatory?

Yes, the Principal Officer of the RRB must acknowledge receipt of this circular to the concerned RBI Regional Office.

📜 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 #1714: RPCD.CO.RRB.AML.No.11048/03.05.28(A)/2009-10 — "Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Standards / Combating of Financing of Terrorism (”
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/433 RPCD.CO.RRB.AML.No.11048/03.05.28(A) /2009-10 April 27, 2010 The Chairman Regional Rural Bank 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.RRB.NO.6557/03.05.28-A/2009-10 dated December 10, 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 further Statement on February 18, 2010 on the subject ( copy enclosed ). It may be observed that the instant FATF statement divides the strategic AML/CFT deficient jurisdictions into three groups as under: Jurisdictions subject to FATF call on its members and other jurisdictions to apply countermeasures to protect the international financial system from the ongoing and substantial money laundering and terrorist financing (ML/FT) risks emanating from the jurisdiction: Iran Jurisdictions with strategic AML/CFT deficiencies that have not committed to an action plan developed with the FATF to address key deficiencies as of February 2010. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction: Angola , Democratic People's Republic of Korea (DPRK), Ecuador and Ethiopia. Jurisdictions previously publicly identified  by the FATF as having strategic AML/ CFT  deficiencies, which remain to be addressed as of February 2010: Pakistan, Turkmenistan and Sao Tome and Principe. 3.  All RRBs are accordingly advised to take into account risks arising from the deficiencies in AML/CFT regime of these countries. 4. Please advise Principal Officer of your bank to acknowledge receipt of this circular letter to our Regional Office concerned. Yours faithfully, (R.C.Sarangi) Chief General Manager Encls: as above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/433 · issued 27 Apr 2010. 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=5631&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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