RRBs: Updated FATF AML/CFT Risks on Iran, DPRK & Other Jurisdictions
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2011-12/133 · issued 28 Jul 2011 · ~2 min read
Quick answerRBI directs RRBs to factor in updated FATF AML/CFT risks from Iran, DPRK, and eight other jurisdictions (Bolivia, Cuba, Ethiopia, Kenya, Myanmar, Sri Lanka, Syria, Turkey) when dealing with entities from these countries. 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 jurisdictions with strategic AML/CFT deficiencies that haven't made sufficient progress. RBI now requires RRBs to account for these risks in business relationships and transactions.
What it means for you
RRBs must enhance due diligence for any transactions or relationships involving Iran, DPRK, or the eight listed jurisdictions. While legitimate trade with Iran is not prohibited, banks need to assess and mitigate the heightened AML/CFT risks. This aligns with global FATF standards to protect the financial system.
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 framework to include the specific risks from Iran, DPRK, and the eight listed jurisdictions.
Instruct relationship managers and compliance teams to apply enhanced due diligence for any transactions or accounts linked to these countries.
Ensure the Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
Review and, if needed, revise internal policies to reflect FATF's updated counter-measures and deficiency list.
Who it affects
All Regional Rural Banks (RRBs), Principal Officers of RRBs, Compliance and AML/CFT teams at RRBs
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 23:55 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).
Does this circular ban all transactions with Iran?
No. The circular explicitly states it does not preclude Indian banks from entering into legitimate trade and business transactions with Iran. However, RRBs must account for the elevated ML/FT risks.
Which jurisdictions are newly flagged for strategic AML/CFT deficiencies?
FATF identified eight jurisdictions: Bolivia, Cuba, Ethiopia, Kenya, Myanmar, Sri Lanka, Syria, and Turkey. RRBs must consider risks from these countries in business dealings.
What action is required from the Principal Officer?
The Principal Officer of each RRB must acknowledge receipt of this circular letter to the concerned RBI Regional Office.
📜 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)
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/133
RPCD.CO.RRB.AML.No.1170 /03.05.28 (A)/2011-12
July 28, 2011
The Chairmen
All Regional Rural Banks (RRBs)
Dear Sir,
Anti-Money Laundering (AML) / Combating of Financial Terrorism (CFT) - Standards
Please refer to our circular RPCD.CO.RRB.AML.No.11078 /03.05.28 (A)/2010-11 dated March 29, 2011 on risks arising from the deficiencies in AML/CFT regime of Iran, 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 identifiedJurisdictions 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, Syria and Turkey.
5. All Regional Rural 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.
6. Please advise Principal Officer of your bank to acknowledge receipt of this circular letter to our Regional Office concerned.
Yours faithfully
(C.D.Srinivasan)
Chief General Manager
Encls: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/133 · issued 28 Jul 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=6641&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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