FATF-identified jurisdictions: UCBs must update AML/CFT checks
No longer current — replaced by Master Direction - Know Your Customer (KYC) Direction, 2016
Source: Reserve Bank of India · RBI/2010-11/246 · issued 25 Oct 2010 · ~1 min read
Quick answerRBI directs all AD I category Urban Co-operative Banks to consider FATF’s June 2010 statement listing jurisdictions with strategic AML/CFT deficiencies. Banks must factor this into their KYC/AML processes and acknowledge receipt to their Regional Office.
What changed
FATF issued a statement on June 25, 2010 identifying jurisdictions with strategic AML/CFT deficiencies and called for action plan implementation. RBI now requires all AD I category UCBs to consider this FATF statement in their KYC/AML/CFT compliance. This supplements the earlier circular of August 12, 2010.
What it means for you
UCBs must update their customer due diligence and transaction monitoring to account for risks from these FATF-flagged jurisdictions. Non-compliance could expose the bank to regulatory action and reputational risk. The Compliance Officer must formally acknowledge receipt, ensuring accountability.
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
Review the enclosed FATF statement and identify any flagged jurisdictions relevant to your customer base or transactions.
Update your KYC/AML/CFT policies and procedures to incorporate enhanced due diligence for those jurisdictions.
Ensure the Compliance Officer/Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
Train staff on the updated AML/CFT requirements and the implications of the FATF statement.
Who it affects
All AD I Category Urban Co-operative Banks, Compliance Officers / Principal Officers of these UCBs, KYC/AML operations teams
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 03:59 IST
Superseded by — Master Direction - Know Your Customer (KYC) Direction, 2016
Status change: superseded03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the FATF statement referenced in this circular?
The FATF statement dated June 25, 2010 lists jurisdictions with strategic AML/CFT deficiencies and calls for action plan implementation. The circular encloses a copy for banks to consider.
Do I need to take any action beyond acknowledging receipt?
Yes. You must consider the information in the FATF statement and integrate it into your KYC/AML/CFT processes. Acknowledging receipt to the Regional Office is a mandatory procedural step.
Which banks are covered by this circular?
All AD I Category Urban Co-operative Banks, as listed in the circular (e.g., Abhyudaya, Bharat, Cosmos, Saraswat, etc.).
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Superseded byMaster Direction - Know Your Customer (KYC) Direction, 2016
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/246
UBD.BPD. (PCB).Cir. No.17/14.01.062/2010-11
October 25, 2010
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.BPD.(PCB) Cir.No.7/14.01.062/2010-11 dated August 12, 2010 . As part of its ongoing review of compliance with the AML/CFT standards, the Financial Action Task Force (FATF) has identified certain jurisdictions which have strategic AML/CFT deficiencies.
2. FATF, vide its statement dated June 25, 2010 ( copy enclosed ) has called upon jurisdictions listed in the statement to complete the implementation of their action plan within the timeframe. The FATF, in the statement has called upon its members to consider the information given in the statement.
3. All banks and All India Financial Institutions are accordingly advised to consider the information contained in the enclosed statement .
4. The Compliance Officer / Principal Officer of the bank should acknowledge receipt of this circular to our Regional Office concerned .
Yours faithfully
(M. Nanda Kumar)
Deputy General Manager
Encl: As above.
List of AD I category UCBs
1.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/246 · issued 25 Oct 2010. The plain-English explanation above is BankPulse’s own independent summary.
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=6058&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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