What changed
FATF issued a new statement on October 22, 2010, updating its list of jurisdictions with strategic AML/CFT deficiencies. Banks and All India Financial Institutions are now advised to consider this updated information.
What it means for you
Banks must stay vigilant about jurisdictions flagged by FATF for weak anti-money laundering and counter-terrorism financing controls. This affects customer due diligence, transaction monitoring, and cross-border relationships.
What you must do
- Review the enclosed FATF statement and identify flagged jurisdictions.
- Update your AML/CFT risk assessment and due diligence procedures accordingly.
- Ensure your Principal Officer acknowledges receipt of this circular.
- Monitor transactions involving listed jurisdictions for suspicious activity.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions
What is the FATF statement about?
It identifies jurisdictions with strategic deficiencies in anti-money laundering and combating financing of terrorism (AML/CFT) regimes and calls for action plans to be completed within a timeframe.
Do we need to take any action beyond acknowledging receipt?
Yes, you must consider the information in the statement and integrate it into your AML/CFT risk management, including enhanced due diligence for transactions involving those jurisdictions.