HomeCirculars › RBI/2010-11/418

AML/CFT Risks: Iran & DPRK – Updated FATF Guidance for Co-op Banks

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/418 · issued 07 Mar 2011 · ~2 min read
Quick answerRBI directs StCBs/DCCBs to factor in AML/CFT deficiencies of Iran and DPRK when dealing with persons or entities from those jurisdictions, following FATF’s October 2010 statement.

What changed

FATF issued a new statement on October 22, 2010, categorizing Iran as a jurisdiction requiring countermeasures due to ongoing ML/FT risks, and DPRK as having strategic deficiencies without a committed action plan. RBI now explicitly asks cooperative banks to consider these risks in business relationships and transactions.

What it means for you

Cooperative banks must take into account risks arising from AML/CFT deficiencies of Iran and DPRK when entering into business relationships and transactions with persons or entities from or in these jurisdictions, as per FATF's October 2010 statement. This aligns with global FATF standards.

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

State Co-operative Banks (StCBs), Central Co-operative Banks (DCCBs), Principal Officers of co-operative banks, Compliance and AML teams in co-operative banks

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What specific actions must my bank take for Iran-related transactions?

FATF calls on members to apply countermeasures to protect the international financial system from Iran. Your bank should take into account the risks arising from AML/CFT deficiencies of Iran when entering into business relationships and transactions with persons or entities from or in Iran.

Does this circular apply only to new customers or also existing ones?

The circular advises banks to take into account risks while entering into business relationships and transactions, which primarily applies to new relationships. It does not explicitly mention existing ones.

What is the deadline for acknowledging receipt?

The circular does not specify a deadline, but it instructs the Principal Officer to acknowledge receipt to the concerned RBI Regional Office.

📜 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 #1548: RPCD.CO.RCB.AML.No.9886/07.02.12/2010-11 — "Anti-Money Laundering (AML) / Combating of Financing of Terrorism (CFT) - Standards" dated March 7, 2011”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/418 RPCD.CO.RCB.AML.No. 9886 /07.02.12/2010-11 March 7, 2011 The Chairmen / CEOs of all State / Central Co-operative Banks Dear Sir, Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) - Standards Please refer to our letter RPCD.CO.RF.AML.No. 1643/07.02.12/2010-11 dated August 9, 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 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 letter to our concerned Regional Office. Yours faithfully, (B.P.Vijayendra) Chief General Manager Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/418 · issued 07 Mar 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=6277&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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