Home › Circulars › RBI/2010-11/465

RBI Tightens AML/CFT Norms for Iran, DPRK Transactions

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/465 · issued 08 Apr 2011 · ~1 min read
Quick answerRBI directs all payment system operators to factor in heightened money laundering and terror financing risks from Iran and DPRK when dealing with entities from those jurisdictions, following FATF's February 2011 statement.

What changed

RBI issued a circular on April 8, 2011, advising all payment system operators under the PSS Act to account for AML/CFT deficiencies in Iran and DPRK. This follows an earlier January 2011 letter and a FATF statement from February 25, 2011, calling for counter-measures against these countries.

What it means for you

Banks and payment operators must now apply enhanced due diligence for any business relationships or transactions involving Iran or DPRK. This increases compliance costs and operational scrutiny, as failure to mitigate these risks could expose institutions to regulatory action.

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

Who it affects

All payment system operators authorised under the PSS Act, 2007, Banks and financial institutions involved in cross-border payments, Compliance and AML/CFT teams

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What triggered this RBI circular?

The circular follows a FATF statement from February 25, 2011, which highlighted ongoing ML/FT risks from Iran and DPRK and urged members to apply counter-measures.

Does this apply to all payment operators or only specific ones?

It applies to all payment system operators authorised under the Payment and Settlement Systems Act, 2007, as per the circular's address.

What should we do if we already have relationships with entities in Iran or DPRK?

You must reassess those relationships considering the heightened risks and apply enhanced due diligence or consider terminating them if risks cannot be mitigated.

📜 Read the original circular — full text as issued by RBI
RBI/2010-11/465 DPSS. CO. AD. No 2318/02.27.005/2010-11 April 8, 2011 All Payment System Operators Authorised under the PSS Act, 2007 Dear Sir Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) – Standards Please refer to our letter   DPSS. CO. AD. No.1569 /02.27.005/2010-11 dated January 18, 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 the Payment System Operators authorised under Payment and Settlement Systems Act, 2007 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.  Nodal Officer/Principal Officer should acknowledge receipt of this circular letter. Yours faithfully, (K. Sivaraman ) General Manager Encl : As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/465 · issued 08 Apr 2011. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6328&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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