RRBs: Enhanced AML/CFT Checks for Iran and North Korea
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/450 · issued 29 Mar 2011 · ~2 min read
Quick answerRBI directs RRBs to apply FATF counter-measures against Iran and DPRK due to ongoing ML/FT risks. Banks must factor these deficiencies into all business relationships and transactions with persons or entities from these jurisdictions.
What changed
FATF issued a further statement on February 25, 2011, calling members and other jurisdictions to apply counter-measures to protect the international financial system from ongoing and substantial ML/FT risks from Iran and DPRK. RBI now advises RRBs to take into account risks from AML/CFT deficiencies of these countries when entering into business relationships and transactions with persons from or in these jurisdictions, referencing earlier January 2011 circular.
What it means for you
RRBs must tighten due diligence for any transaction or relationship involving Iran or DPRK. This increases compliance burden and may restrict business with counterparties linked to these jurisdictions. Failure to comply could expose banks to regulatory action and reputational risk.
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 include enhanced scrutiny for Iran and DPRK-related transactions.
Train staff to identify and flag transactions involving persons or entities from these countries.
Ensure Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
Review existing relationships with counterparties from Iran and DPRK for potential ML/FT risks.
Who it affects
All Regional Rural Banks (RRBs), Principal Officers of RRBs, Compliance and AML teams at RRBs
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 02:04 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 specific counter-measures does FATF require for Iran and DPRK?
The circular does not detail specific counter-measures but refers to FATF's February 25, 2011 statement. RRBs are advised to apply measures to protect the financial system from ML/FT risks from these jurisdictions.
Does this circular apply to existing customers from Iran or DPRK?
Yes, the circular advises RRBs to consider AML/CFT deficiencies when entering into business relationships and transactions with persons from these countries, which includes ongoing relationships.
What happens if an RRB does not comply with this directive?
The circular does not specify penalties, but non-compliance with AML/CFT standards can lead to regulatory action, including fines or restrictions, as per RBI's supervisory framework.
📜 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)
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/450
RPCD.CO.RRB.AML.No. 11078 /03.05.28 (A)/2010-11
March 29, 2011
The Chairmen
All Regional Rural Banks (RRBs)
Dear Sir,
Anti-Money Laundering (AML) / Combating of Financial Terrorism (CFT) - Standards
Please refer to our circular RPCD.CO.RRB.AML.No.7857 /03.05.28 (A)/2010-11 dated January 17, 2011 on risks arising from the deficiencies in AML/CFT regime of Iran, 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 Regional Rural Banks 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 to our Regional Office concerned.
Yours faithfully
(B.P.Vijayendra)
Chief General Manager
Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/450 · issued 29 Mar 2011. The plain-English explanation above is BankPulse’s own independent summary.
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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=6310&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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