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RBI warns banks on AML/CFT risks from Iran, DPRK

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/364 · issued 11 Jan 2011 · ~1 min read
Quick answerRBI directs banks to factor in AML/CFT deficiencies of Iran and DPRK when dealing with entities from these jurisdictions, following FATF's October 2010 statement.

What changed

FATF issued a statement on October 22, 2010, dividing deficient jurisdictions into two groups: Iran, subject to countermeasures, and DPRK, with unaddressed deficiencies. RBI now requires banks to consider these risks in business relationships and transactions.

What it means for you

Banks must enhance due diligence for any transactions or relationships involving Iran or DPRK to mitigate money laundering and terrorist financing risks. This may lead to stricter screening, reporting, or even rejection of such business.

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

All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions

❓ 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 two groups of jurisdictions mentioned in the FATF statement?

Iran is subject to countermeasures due to substantial ML/FT risks, while DPRK has strategic deficiencies without a committed action plan.

Do we need to stop all business with Iran and DPRK?

No, but you must assess and mitigate risks from these jurisdictions in all business relationships and transactions.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #1564: DBOD.AML.No.10854/14.01.038/2010-11 — "Anti-Money Laundering (AML) / Combating of Financing of Terrorism (CFT) - Standards" dated January 11, 2011”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/364 DBOD. AML. No. 10854/14.01.038/2010-11 January 11, 2011 The Chairmen/CEOs of all Scheduled Commercial Banks(Excluding RRBs)/ Local Area Banks / All India Financial Institutions Dear Sir, Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) - Standards Please refer to our letter DBOD. AML.No.1930/14.01.036/2009-10 dated August 2, 2010 on risks arising from the deficiencies in AML/CFT regime of Iran, Democratic People's Republic of Korea (DPRK), and Sao Tome and Principe . 2. Financial Action Task Force (FATF) has issued a further Statement on October 22, 2010 on the subject ( copy enclosed ). It may be observed that the statement divides the strategic AML/CFT deficient jurisdictions into two 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 October 2010. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction: Democratic People's Republic of Korea (DPRK). 3. All banks and All India Financial Institutions are accordingly advised to take into account risks arising from the deficiencies in AML/CFT regime of these countries, while entering into business relationships and transactions with persons (including legal persons and other financial institutions) from or in these countries/ jurisdictions. 4. Please advise Principal Officer of your bank to acknowledge receipt of this circular letter. Yours faithfully, (Vinay Baijal) Chief General Manager Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/364 · issued 11 Jan 2011. 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=6211&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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