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.
What you must do
- 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.
- Advise the Principal Officer of your bank to acknowledge receipt of this letter to the concerned RBI Regional Office.
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
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.