What changed
FATF identified certain jurisdictions with strategic AML/CFT deficiencies and called on them to complete action plans within a timeframe. RBI now requires all RRBs to consider the information in FATF's June 25, 2010 statement and ensure compliance.
What it means for you
RRBs must stay alert to FATF's list of high-risk jurisdictions and adjust their KYC/AML procedures accordingly. This circular reinforces that RRBs are expected to actively monitor and mitigate risks from cross-border transactions or accounts linked to those jurisdictions.
What you must do
- Review FATF's June 25, 2010 statement and identify any jurisdictions with strategic AML/CFT deficiencies.
- Update your bank's KYC/AML policies to account for risks from those jurisdictions.
- Ensure your Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
Who it affects
All Regional Rural Banks (RRBs), Principal Officers of RRBs, Compliance and AML teams at RRBs
What is the FATF statement referenced in this circular?
FATF issued a statement on June 25, 2010 identifying jurisdictions with strategic AML/CFT deficiencies and called on them to complete action plans within a timeframe. The statement is enclosed with the RBI circular.
Do RRBs need to take any immediate action beyond acknowledging receipt?
Yes, RRBs must consider the information in the FATF statement and adjust their KYC/AML procedures accordingly. Acknowledging receipt to the regional office is a procedural step, but the core requirement is to act on the AML/CFT risks.