RBI advises co-op banks on Iran, North Korea AML risks
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/490 · issued 27 Apr 2011 · ~2 min read
Quick answerRBI advises all StCBs/DCCBs to factor in AML/CFT deficiencies of Iran and DPRK when dealing with persons or entities from those jurisdictions, following FATF's February 25, 2011 call for counter-measures.
What changed
RBI issued a circular on April 27, 2011, referencing FATF's February 25, 2011 statement that urged members to apply counter-measures against Iran and DPRK due to ongoing ML/FT risks. This builds on an earlier March 7, 2011 letter on the same subject. Banks are advised to consider these risks in all business relationships and transactions with those countries.
What it means for you
Co-operative banks are advised to tighten due diligence for any customer or counterparty linked to Iran or North Korea. Failure to identify and mitigate these risks could expose the bank to regulatory action and reputational damage. This aligns with global FATF standards and reinforces India's commitment to combating money laundering and terrorist financing.
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
Consider updating your AML/CFT policy to explicitly flag Iran and DPRK as high-risk jurisdictions.
Consider training staff to identify transactions or relationships involving persons or entities from these countries.
Ensure your Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
Consider reviewing existing customer portfolios for any exposure to Iran or DPRK and apply enhanced due diligence.
Who it affects
All State Co-operative Banks (StCBs), All District Central Co-operative Banks (DCCBs), Chairmen/CEOs of co-operative banks
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 01:47 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 triggered this circular from RBI?
The Financial Action Task Force (FATF) issued a statement on February 25, 2011, calling for counter-measures against Iran and DPRK due to serious deficiencies in their AML/CFT regimes. RBI is advising co-operative banks to act on this.
Does this apply to all transactions or only new ones?
The circular advises banks to take into account these risks while entering into business relationships and transactions. This implies both new and existing relationships should be reviewed for exposure to Iran or DPRK.
What should the Principal Officer do?
The Principal Officer must acknowledge receipt of this letter to the concerned RBI Regional Office, as stated in paragraph 4 of the circular.
📜 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)
RBI’s words: “Official withdrawal register entry #1531: RPCD.CO.RCB.AML.No.12295/07.02.12/2010-11 — "Anti-Money Laundering (AML) / Combating of Financing of Terrorism (CFT) - Standards" dated April 27, 2011”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/490
RPCD.CO.RCB.AML.No.12295/07.02.12/2010-11
April 27, 2011
The Chairmen / CEOs of all State / Central Co-operative Banks
Dear Sir,
Anti - Money Laundering (AML)/Combating of Financing of Terrorism (CFT) - Standards
Please refer to our letter RPCD.CO.RCB.AML.No.9886/07.02.12/2010-11 dated March 7, 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 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 letter to our concerned Regional Office.
Yours faithfully,
(C.D.Srinivasan)
Chief General Manager
Encl : As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/490 · issued 27 Apr 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=6362&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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