What changed
RBI forwarded a fresh FATF Statement dated February 25, 2011, updating the earlier March 10, 2011 communication. The new Statement calls on listed jurisdictions to complete their action plans within specified timeframes and asks FATF members to consider the information provided.
What it means for you
Co-operative banks must incorporate the updated FATF list into their AML/CFT risk frameworks. This ensures that transactions or relationships with entities from deficient jurisdictions receive enhanced scrutiny. Non-compliance could expose banks to regulatory action and reputational risk.
What you must do
- Review the enclosed FATF Statement and update your AML/CFT risk assessment accordingly.
- Ensure your Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
- Advise all relevant staff to be aware of the listed jurisdictions and apply enhanced due diligence where warranted.
Who it affects
State Co-operative Banks (StCBs), District Central Co-operative Banks (DCCBs), Principal Officers of co-operative banks
What is the FATF Statement about?
It identifies jurisdictions with strategic deficiencies in anti-money laundering and combating financing of terrorism (AML/CFT) regimes, and calls on them to implement action plans within set timeframes.
Do we need to report anything to RBI?
Yes, the Principal Officer must acknowledge receipt of this circular to the concerned RBI Regional Office as directed.
How should we use this information?
Consider the listed jurisdictions in your customer risk profiling and transaction monitoring processes, applying enhanced due diligence where necessary.