RBI Tightens AML/CFT Norms for Iran and DPRK Transactions
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/446 · issued 24 Mar 2011 · ~1 min read
Quick answerRBI directs banks to factor in AML/CFT risks from Iran and DPRK when dealing with persons or entities from these jurisdictions, following FATF's February 2011 statement calling for counter-measures.
What changed
RBI issued a circular on March 24, 2011, referencing FATF's February 25, 2011 statement, which urged members to apply counter-measures against Iran and DPRK due to ongoing ML/FT risks. Banks and All India Financial Institutions must now consider these risks in business relationships and transactions with entities from or in these countries.
What it means for you
Banks and lenders must enhance due diligence for any transaction or relationship involving Iran or DPRK, including legal persons and financial institutions. This increases compliance burden and may require additional screening or reporting. Non-compliance could expose banks to regulatory action or reputational damage.
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
Update AML/CFT policies to explicitly address risks from Iran and DPRK.
Train staff to identify and flag transactions involving these jurisdictions.
Ensure Principal Officer acknowledges receipt of this circular.
Review existing relationships with any counterparties linked to Iran or DPRK.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 02:11 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What triggered this circular?
FATF issued a statement on February 25, 2011, highlighting ongoing ML/FT risks from Iran and DPRK and calling for counter-measures.
Does this apply to existing customers?
Yes, banks must consider AML/CFT risks when entering into or continuing business relationships with persons or entities from or in these countries.
What should we do if we have no exposure to Iran or DPRK?
Still update your AML/CFT framework to cover these risks and ensure staff awareness, as indirect exposure through third parties is possible.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1545: DBOD.AML.No.15007/14.01.001/2010-11 — "Anti-Money Laundering (AML) / Combating of Financing of Terrorism (CFT) - Standards" dated March 24, 2011”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/446
DBOD. AML.No. 15007/14.01.001/2010-11
March 24, 2011
The Chairmen/CEOs of all Scheduled Commercial Banks (Excluding RRBs)/Local Area Banks / All India Financial Institutions
Dear Sir,
Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) - Standards
Please refer to our letter DBOD. AML.No.10854 /14.01.038/ 2010-11 dated January 11, 2011 on risks arising from the deficiencies in AML/CFT regime of Iran and Democratic People's Republic of Korea (DPRK).
2. Financial Action Task Force (FATF) has issued a further Statement on February 25, 2011 on the subject ( copy enclosed ) calling its members and other jurisdictions to apply counter-measures to protect the international financial system from the ongoing and substantial money laundering and terrorist financing (ML/FT) risks emanating from Iran and Democratic People's Republic of Korea (DPRK).
3. All banks and All India Financial Institutions 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 circular letter.
Yours faithfully,
(Vinay Baijal)
Chief General Manager
Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/446 · issued 24 Mar 2011. The plain-English explanation above is BankPulse’s own independent summary.
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.
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=6306&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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