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
- Review the enclosed FATF statement and assess its implications for your money changing operations.
- 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.
Who it affects
All authorised persons (banks, money changers, forex dealers), Principal Officers of authorised entities, Constituents involved in money changing activities
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.