What changed
FATF issued a new statement on October 22, 2010, updating its list of jurisdictions with strategic AML/CFT deficiencies. This circular forwards that statement to co-operative banks, replacing the earlier August 23, 2010 communication. Banks are now required to consider the latest information in their AML/CFT processes.
What it means for you
Co-operative banks must integrate the updated FATF list into their customer due diligence and transaction monitoring processes, as advised by the RBI circular.
What you must do
- Review the enclosed FATF statement and update your bank's risk assessment for jurisdictions with strategic AML/CFT deficiencies.
- Ensure your Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
- Incorporate the updated list into your AML/CFT policies, especially for enhanced due diligence on cross-border transactions.
Who it affects
State Co-operative Banks, Central Co-operative Banks, Principal Officers of co-operative banks, AML/CFT compliance teams
What is the FATF statement referenced in this circular?
The FATF statement dated October 22, 2010, identifies jurisdictions with strategic deficiencies in anti-money laundering and combating financing of terrorism regimes. It calls on those jurisdictions to complete their action plans within a timeframe and urges FATF members to consider the information.
Do I need to take any action if my bank has no exposure to the listed jurisdictions?
Yes. The circular requires all co-operative banks to consider the information in the statement, regardless of current exposure. This is a risk-awareness measure. You must still acknowledge receipt and ensure your AML framework accounts for potential future transactions.
What happens if my Principal Officer does not acknowledge receipt?
The circular instructs the Principal Officer to acknowledge receipt to the concerned RBI Regional Office. Non-compliance may be viewed as a regulatory lapse and could invite supervisory action.