HomeCirculars › RBI/2010-11/369

RRBs: Updated FATF AML/CFT Risk Jurisdictions

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/369 · issued 17 Jan 2011 · ~1 min read
Quick answerRBI directs RRBs to account for AML/CFT risks from Iran (countermeasures required) and DPRK (risk consideration needed) per FATF's October 2010 statement, updating earlier August 2010 guidance.

What changed

FATF's October 22, 2010 statement reclassified strategic AML/CFT deficient jurisdictions into two groups: Iran, requiring countermeasures due to substantial ML/FT risks, and DPRK, with deficiencies but no committed action plan. RBI now advises RRBs to factor these risks into business relationships and transactions with entities from these countries.

What it means for you

RRBs must enhance due diligence for any dealings involving Iran or DPRK, potentially applying stricter monitoring or restrictions. This aligns with global FATF standards to protect the financial system from money laundering and terrorist financing risks.

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 Regional Rural Banks (RRBs), Principal Officers of RRBs, Compliance and AML/CFT teams at RRBs

❓ 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?

The first group includes Iran, where FATF calls for countermeasures due to ongoing ML/FT risks. The second group includes DPRK, which has strategic deficiencies but no committed action plan, requiring risk consideration.

Do RRBs need to stop all transactions with Iran or DPRK?

No, but they must assess and mitigate risks from these jurisdictions. For Iran, countermeasures are recommended; for DPRK, risk consideration is required. RBI advises taking these risks into account when entering business relationships.

What should the Principal Officer do after receiving this circular?

The Principal Officer must acknowledge receipt of the circular letter to the concerned RBI Regional Office, as per paragraph 4 of the circular.

📜 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 #1561: RPCD.CO.RRB.AML.No.7857/03.05.28(A)/2010-11 — "Anti-Money Laundering (AML) / Combating of Financial Terrorism (CFT) - Standards" dated January 17, 2011”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/369 RPCD.CO.RRB.AML.No. 7857/03.05.28 (A)/2010-11 January 17, 2011 The Chairmen All Regional Rural Banks (RRBs) Dear Sir, Anti-Money Laundering (AML) / Combating of Financial Terrorism (CFT) -  Standards Please refer to our circular RPCD.CO.RRB.AML.No.2341 /03.05.28 (A)/2010-11 dated August 24, 2010 on risks arising from the deficiencies in AML/CFT regime of Iran, Democratic People's Republic of Korea (DPRK), 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 Regional Rural Banks 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 to our Regional Office concerned. Yours faithfully, (B.P.Vijayendra) Chief General Manager Encl : As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/369 · issued 17 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=6216&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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