FATF AML/CFT Risk Update for Co-op Banks: May 2010
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2009-10/462 · issued 12 May 2010 · ~2 min read
Quick answerRBI directs StCBs and CCBs to factor in AML/CFT risks from Iran, Angola, DPRK, Ecuador, Ethiopia, Pakistan, Turkmenistan, and Sao Tome and Principe per FATF's February 2010 statement. Banks must assess and mitigate these risks.
What changed
FATF issued a new statement on February 18, 2010, categorizing jurisdictions with strategic AML/CFT deficiencies into three groups: Iran (countermeasures required), Angola, DPRK, Ecuador, Ethiopia (no action plan committed), and Pakistan, Turkmenistan, Sao Tome and Principe (previously identified deficiencies remain). RBI updated its earlier December 2009 advisory to include this revised FATF classification for cooperative banks.
What it means for you
Cooperative banks must now apply enhanced due diligence or countermeasures for transactions involving these jurisdictions, especially Iran. The three-tier FATF grouping signals varying risk levels, requiring banks to tailor their AML/CFT controls accordingly. Non-compliance could expose banks to regulatory action and reputational risk.
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
Update your bank's AML/CFT risk assessment to include the three FATF jurisdiction groups from the February 2010 statement.
Apply appropriate countermeasures for Iran and enhanced scrutiny for Angola, DPRK, Ecuador, Ethiopia, Pakistan, Turkmenistan, and Sao Tome and Principe.
Ensure the Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
Review and strengthen transaction monitoring systems for cross-border flows involving these countries.
Who it affects
State Co-operative Banks (StCBs), Central Co-operative Banks (CCBs), Principal Officers of co-operative banks, AML/CFT compliance teams
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 06:17 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What are the three FATF jurisdiction groups mentioned in this circular?
Group 1: Iran (countermeasures to protect financial system). Group 2: Angola, DPRK, Ecuador, Ethiopia (deficiencies, no action plan). Group 3: Pakistan, Turkmenistan, Sao Tome and Principe (previously identified deficiencies remain).
Do we need to apply the same level of controls for all listed countries?
No. Iran requires countermeasures due to substantial ML/FT risks. For Group 2 and 3 countries, banks must consider risks and apply enhanced due diligence as appropriate, based on the FATF call.
What action is required from the Principal Officer?
The Principal Officer must acknowledge receipt of this circular to the concerned RBI Regional Office, as stated in paragraph 4 of the circular.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1706: RPCD.CO.RF.AML.No.11830/07.02.12/2009-10 — "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/2009-10/462
RPCD.CO.RF.AML.No.11830/07.02.12/2009-10
May 12, 2010
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)- StCBs & CCBs
Please refer to our letter RPCD.CO.RF.AML.No.6548/07.02.12/2009-10 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 banks 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 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/2009-10/462 · issued 12 May 2010. The plain-English explanation above is BankPulse’s own independent summary.
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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=5674&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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