Home › Circulars › RBI/2010-11/374

FATF AML/CFT Risks: Iran & DPRK – Payment System Alert

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/374 · issued 18 Jan 2011 · ~1 min read
Quick answerRBI directs all payment system entities to factor in AML/CFT risks from Iran (subject to countermeasures) and DPRK (strategic deficiencies) when dealing with persons or institutions from these jurisdictions.

What changed

RBI forwarded FATF's October 2010 statement classifying Iran as requiring countermeasures due to substantial ML/FT risks, and DPRK as having strategic deficiencies without an action plan. Payment system entities must now consider these risks in business relationships and transactions.

What it means for you

Banks and payment operators must enhance due diligence for any transaction or relationship involving Iran or DPRK. This aligns with global FATF standards and previous RBI circulars, reinforcing the need to protect India's financial system from cross-border illicit flows.

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 authorised payment system operators in India, Banks handling cross-border transactions, Compliance and AML/CFT teams

❓ 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 categories of jurisdictions mentioned in this circular?

Iran is subject to FATF countermeasures due to ongoing ML/FT risks. DPRK has strategic deficiencies and has not committed to an action plan as of October 2010.

Do I need to stop all transactions with Iran and DPRK?

No, but you must assess and mitigate the risks arising from their deficient AML/CFT regimes before entering into any business relationship or transaction.

Is this a new requirement?

No, it supplements earlier RBI guidance from August 2010 (circular DBOD.AML.No.1930/14.01.036/2009-10) and aligns with FATF updates.

📜 Read the original circular — full text as issued by RBI
RBI/2010-11/374 DPSS. CO. AD. No. 1569/02.27.005/2010-11 January 18, 2011 All the Authorised entities operating payment system in India Dear Sir Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) – Standards We are forwarding herewith a copy of Statement issued on October 22, 2010 by the Financial Action Task Force (FATF) on the subject ( 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). 2. All the Authorised entities operating payment system in India 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. 3. You are also advised to refer to the circular 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.  The said circular is available on our website www.rbi.org.in . 4. Nodal Officer/Principal Officer should acknowledge receipt of this circular letter. Yours faithfully, (K. C. Anand) Deputy General Manager Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/374 · issued 18 Jan 2011. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forCompliance TeamKYC / AML AnalystTrade Finance / Forex OperationsCorporate / Wholesale Banking RMCurrent Account / Trade RMNRI Relationship Manager
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Payment & Settlement Systems
RBI mandates settlement accounts for payment intermediariesRBI Revises Cheque Collection Charges from April 2011NECS Expansion: Banks Must Onboard All NEFT BranchesMandatory electronic payments for large-value transactionsStandardised RTGS Return Process and Customer Alerts
Browse all departments →

💬 Banker Discussion

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.

Loading comments…
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=6225&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.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—