What changed
FATF issued a new statement on October 22, 2010, updating its list of jurisdictions with strategic AML/CFT deficiencies. RBI now requires all AD Category I Primary Urban Co-operative Banks to consider this updated statement in their operations.
What it means for you
Urban Co-operative Banks must incorporate the latest FATF findings into their AML/CFT frameworks, especially when dealing with counterparties from listed jurisdictions. Non-compliance could expose banks to regulatory action and reputational risk.
What you must do
- Review the enclosed FATF statement dated October 22, 2010, and update your AML/CFT risk assessments accordingly.
- Ensure your compliance and principal officers acknowledge receipt of this circular to the respective RBI Regional Office.
- Advise all relevant departments to factor the FATF list into customer due diligence and transaction monitoring processes.
Who it affects
All AD Category I Primary Urban Co-operative Banks, Compliance Officers and Principal Officers of these banks
What is the FATF statement about?
It identifies jurisdictions with strategic deficiencies in anti-money laundering and combating financing of terrorism (AML/CFT) frameworks, urging members to consider these risks.
Do we need to report anything to RBI after reviewing the statement?
Yes, the Compliance Officer or Principal Officer must acknowledge receipt of this circular to the RBI Regional Office concerned.