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FATF Updates on Iran, DPRK, and Other High-Risk Jurisdictions

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2011-12/131 · issued 27 Jul 2011 · ~1 min read
Quick answerRBI advises banks to factor in AML/CFT risks from Iran, DPRK, and eight other countries (Bolivia, Cuba, Ethiopia, Kenya, Myanmar, Sri Lanka, Syria, Turkey) when dealing with entities from those jurisdictions. Legitimate trade with Iran remains allowed.

What changed

FATF updated its statement on June 24, 2011, calling for counter-measures against Iran and DPRK due to ongoing ML/FT risks. It also flagged eight additional jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress. RBI now requires banks to consider these risks in business relationships and transactions.

What it means for you

Banks must enhance due diligence for transactions involving these countries to avoid regulatory penalties. The advisory does not ban legitimate trade with Iran but stresses risk assessment. Lenders should update their AML/CFT policies and train staff on these heightened-risk jurisdictions.

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

Who it affects

All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Which countries are newly flagged for strategic AML/CFT deficiencies?

Bolivia, Cuba, Ethiopia, Kenya, Myanmar, Sri Lanka, Syria, and Turkey. These jurisdictions have not made sufficient progress in addressing deficiencies.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1445: DBOD.AML.No.1454/14.01.001/2011-12 — "Anti-Money Laundering (AML) / Combating of Financing of Terrorism (CFT) - Standards" dated July 27, 2011”
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/131 DBOD. AML.No. 1454/14.01.001/2011-12 July 27, 2011 The Chairmen/CEOs of all Scheduled Commercial Banks(Excluding RRBs)/ Local Area Banks / All India Financial Institutions Dear Sir, Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) - Standards Please refer to our letter DBOD. AML.No.15007 /14.01.001/ 2010-11 dated March 24, 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 updated its Statement on June 24, 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. This advisory does not preclude Indian banks or financial institutions entering into legitimate trade and business transactions with Iran. 4. FATF has also identified Jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress in addressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction as described in the Statement: Bolivia ,Cuba, Ethiopia, Kenya, Myanmar, Sri Lanka and Syria, Turkey. 5. 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. 6. Please advise Principal Officer of your bank to acknowledge receipt of this circular letter. Yours faithfully, (Deepak Singhal) Chief General Manager Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/131 · issued 27 Jul 2011. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6638&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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