What changed
FATF issued a new statement on February 25, 2011, updating its list of jurisdictions with strategic AML/CFT deficiencies. This supersedes the earlier January 2011 statement. Banks must now consider this latest information.
What it means for you
Banks must update their AML/CFT risk assessments to reflect the revised FATF list. Enhanced due diligence may be required for transactions involving these jurisdictions. Non-compliance could expose banks to regulatory scrutiny.
What you must do
- Review the enclosed FATF statement and update your AML/CFT risk frameworks accordingly.
- Advise your Principal Officer to acknowledge receipt of this circular.
- Ensure all relevant staff are briefed on the updated list of deficient jurisdictions.
- Monitor transactions with listed jurisdictions for potential money laundering or terrorist financing risks.
Who it affects
Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions
What is the purpose of this circular?
It directs banks to consider FATF's February 2011 statement identifying jurisdictions with strategic AML/CFT deficiencies, to strengthen compliance.
Do we need to take any action beyond acknowledging receipt?
Yes, you must integrate the FATF statement into your AML/CFT risk assessment and due diligence processes for relevant jurisdictions.