No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-2011/150 · issued 02 Aug 2010 · ~2 min read
Quick answerRBI directs banks to apply enhanced due diligence for business with Iran, DPRK, and Sao Tome and Principe due to FATF-identified AML/CFT deficiencies. Iran faces countermeasures; the other two require risk consideration.
What changed
FATF updated its statement on June 25, 2010, dividing deficient jurisdictions into two groups: Iran (subject to countermeasures) and DPRK and Sao Tome and Principe (strategic deficiencies without committed action plans). RBI now requires banks to factor these risks into all relationships and transactions with entities from these countries.
What it means for you
Banks must reassess and potentially tighten controls for any exposure to Iran, DPRK, or Sao Tome and Principe. For Iran, this means applying countermeasures like enhanced monitoring or transaction restrictions. For the other two, a risk-based approach is needed, but the absence of FATF action plans signals higher scrutiny.
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
Update your AML/CFT risk assessment to include the three flagged jurisdictions.
Apply enhanced due diligence for all new and existing relationships with persons or entities from Iran, DPRK, and Sao Tome and Principe.
Implement appropriate countermeasures for Iran-related transactions as per FATF call.
Ensure Principal Officer acknowledges receipt of this circular and briefs relevant teams.
Monitor FATF updates for any changes to these jurisdictions' status.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions, Principal Officers of banks
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-19 04:40 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 specific countermeasures are required for Iran?
The circular does not list specific countermeasures; it directs banks to apply measures to protect the financial system from ongoing ML/FT risks. Banks should refer to FATF guidance and their own risk frameworks for appropriate actions.
Does this apply to existing customers from these countries?
Yes, the circular advises banks to consider risks while entering into business relationships and transactions, which implies both new and existing relationships should be reviewed.
What if a customer is only indirectly linked to these jurisdictions?
The circular covers transactions with persons from or in these countries, including legal persons and financial institutions. Banks should assess beneficial ownership and transaction chains for any indirect links.
📜 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 #1621: DBOD.AML.No.1930/14.01.036/2010-11 — "Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Standards / Combating of Financing of Terrorism (CFT)" date”
📜 Read the original circular — full text as issued by RBI
RBI/2010-2011/150
DBOD. AML.No.1930/14.01.036/2010-11
August 2, 2010
The Chairmen/CEOs of all Scheduled Commercial Banks(Excluding RRBs)/
Local Area Banks / All India Financial Institutions
Dear Sir,
Know Your Customer (KYC) Norms/ Anti- Money Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT)
Please refer to our letter DBOD. AML.No.16477/14.01.034/2009-10 dated March 26, 2010 on risks arising from the deficiencies in AML/CFT regime of Iran, Angola, Democratic People's Republic of Korea (DPRK), Ecuador, Ethiopia, Pakistan, Turkmenistan and Sao Tome and Principe .
2. Financial Action Task Force (FATF) has issued a further Statement on June 25, 2010 on the subject ( copy enclosed ). It may be observed that the statement divides the strategic AML/CFT deficient jurisdictions into two groups as under:
Jurisdictions subject to FATF call on its members and other jurisdictions to apply countermeasures to protect the international financial system from the ongoing and substantial money laundering and terrorist financing (ML/FT) risks emanating from the jurisdiction : Iran
Jurisdictions with strategic AML/CFT deficiencies that have not committed to an action plan developed with the FATF to address key deficiencies as of June 2010. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction: Democratic People's Republic of Korea (DPRK), Sao Tome and Principe.
3. All banks and All India Financial Institutions 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 circular letter.
Yours faithfully,
(Vinay Baijal)
Chief General Manager
Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-2011/150 · issued 02 Aug 2010. The plain-English explanation above is BankPulse’s own independent summary.
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.
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=5916&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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