Home › Circulars › RBI/2010-11/470

RBI Updates AML/CFT Standards for Money Changers

Current · Source: Reserve Bank of India · RBI/2010-11/470 · issued 06 Apr 2011 · ~1 min read
Quick answerRBI directs all authorised persons to consider FATF's October 2010 statement on AML/CFT standards for money changing activities, urging timely implementation of action plans. Non-compliance may attract penalties under FEMA and PMLA.
The rule, in the simplest words
How it plays out — a real example

A KYC & compliance officer in Indore, Priya, receives this RBI circular. She reads the enclosed FATF statement, then updates her bank's money-changing checklist to include checking customer IDs more carefully. She also emails the circular to her team and asks her Principal Officer to confirm receipt to RBI, so they avoid penalties under FEMA and PMLA.

What changed

RBI has issued a circular referencing FATF's October 22, 2010 statement, which calls on jurisdictions to complete their action plan implementation within a timeframe. Authorised persons are now required to consider the information in that statement and bring it to the notice of their constituents.

What it means for you

Banks and money changers must stay updated on FATF's evolving AML/CFT expectations and ensure their compliance frameworks align with the latest international standards. Failure to act on these guidelines could lead to regulatory penalties under FEMA and PMLA.

What you must do

Who it affects

All authorised persons (banks, money changers, forex dealers), Principal Officers of authorised entities, Constituents involved in money changing activities

❓ Common questions

What is the key action required from authorised persons under this circular?

Authorised persons must consider the information in FATF's October 2010 statement and bring the circular's contents to the notice of their constituents. They should also ensure their Principal Officer acknowledges receipt.

What are the legal bases for this circular?

The circular is issued under Section 10(4) and Section 11(1) of FEMA, 1999, and under PMLA, 2002 (as amended). Non-compliance may attract penal provisions under these acts.

📜 Read the original circular — full text as issued by RBI
RBI/2010-11/470 A.P. (DIR Series) Circular No.51 A.P. (FL/RL Series) Circular No. 13 April 06, 2011 To, All Authorised Persons Madam/ Dear Sir, Anti-Money Laundering (AML) standards/Combating the Financing of Terrorism (CFT) Standards - Money changing activities Attention of all Authorised Persons is invited to Paragraph 4.10 (b) of F-Part-I, Annex to A.P. (DIR Series) Circular No.17 {A.P. (FL/RL Series) Circular No.4} dated November 27, 2009 on the captioned subject. 2.Financial Action Task Force (FATF) has issued a further Statement on October 22, 2010 on the subject ( copy enclosed ) calling upon jurisdictions listed in the statement to complete the implementation of their action plan within the timeframe. The FATF, in the Statement has called upon its members to consider the information given in the Statement.   3. Authorised Persons are accordingly advised to consider the information contained in the enclosed Statement. 4. Authorised Persons may bring the contents of this circular to the notice of their constituents concerned. 5.Please advise your Principal Officer to acknowledge receipt of this circular letter. 6.The directions contained in this Circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and also under the Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009 and Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005 as amended from time to time. Non-compliance with the guidelines would attract penal provisions of the Acts concerned or Rules made there under. Yours faithfully, (Smt. Sujatha Elizabeth Prasad) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/470 · issued 06 Apr 2011. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forCompliance TeamCorporate / Wholesale Banking RMTrade Finance / Forex OperationsTreasury Team / ALMKYC / AML AnalystInternal Audit
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Foreign Exchange (FEMA)
RBI raises cash carry limit for travellers to Rs 7,500Rupee Value of Special Currency Basket Revised to Rs.60.897378ECB Policy Liberalised: Cost Ceilings Removed, NBFCs & Realty Get BoostECB: Integrated Township Exemption Removed, Cost Ceilings TightenedRBI Delegates Bank Guarantee Powers for Foreign Airlines to AD Banks
Browse all departments →
Who does what — compliance checklist
⚙️ Operations
  • Review the enclosed FATF statement and assess its implications for your money changing operations.
📜 Compliance
  • Advise your Principal Officer to acknowledge receipt of this circular to RBI.
  • Communicate the circular's contents to all relevant constituents and staff involved in money changing activities.
  • Ensure your AML/CFT policies and procedures are updated to reflect FATF's latest recommendations.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are an Operations officer at a bank this circular applies to (All authorised persons (banks, money changers, forex dealers), Principal Officers of authorised entities, Constituents involved in money changing activities), your first concrete step on “RBI Updates AML/CFT Standards for Money Changers” is: “Review the enclosed FATF statement and assess its implications for your money changing operations.” (RBI issued this 06 Apr 2011).

  1. Circular: RBI/2010-11/470 -- RBI Updates AML/CFT Standards for Money Changers
  2. Issued: 06 Apr 2011
  3. Action required: Review the enclosed FATF statement and assess its implications for your money changing operations.
  4. Action required: Advise your Principal Officer to acknowledge receipt of this circular to RBI.
  5. Action required: Communicate the circular's contents to all relevant constituents and staff involved in money changing activities.
  6. Action required: Ensure your AML/CFT policies and procedures are updated to reflect FATF's latest recommendations.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

💬 Banker Discussion

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.

Loading comments…
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=6334&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.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—