What changed
RBI reiterated that MTSS agents must consider risks from jurisdictions with strategic AML/CFT deficiencies as per FATF statements. It specifically referenced FATF's June 25, 2010 statement and advised agents to review the enclosed information.
What it means for you
Banks acting as MTSS agents must update their risk assessment frameworks to include FATF-identified high-risk jurisdictions. This ensures compliance with PMLA obligations and avoids penal action under FEMA or PMLA for non-compliance.
What you must do
- Review the enclosed FATF statement dated June 25, 2010, and update your AML/CFT risk assessments accordingly.
- Advise your Principal Officer to acknowledge receipt of this circular.
- Communicate the circular's contents to all relevant constituents handling cross-border inward remittances under MTSS.
- Ensure enhanced due diligence for transactions involving individuals from FATF-listed jurisdictions.
Who it affects
Authorised Persons (Indian Agents) under Money Transfer Service Scheme, Principal Officers of MTSS agents, Compliance teams handling cross-border inward remittances
What is the key requirement from this circular?
MTSS agents must consider AML/CFT deficiencies of jurisdictions identified by FATF in its June 2010 statement when processing cross-border inward remittances.
What are the consequences of non-compliance?
Non-compliance attracts penal provisions under FEMA, 1999, and PMLA, 2002, as amended, along with related rules.