What changed
RBI forwarded a new FATF statement issued on June 24, 2011, updating the list of jurisdictions with strategic AML/CFT deficiencies. This supersedes the earlier FATF statement referenced in the April 1, 2011 circular. The FATF calls on these jurisdictions to complete their action plans within a specified timeframe.
What it means for you
RRBs must incorporate the updated FATF list into their AML/CFT risk assessment frameworks. This affects customer due diligence, transaction monitoring, and reporting obligations. Non-compliance could expose banks to regulatory action and reputational risk.
What you must do
- Review the enclosed FATF statement and update your bank's AML/CFT risk assessment accordingly.
- Ensure your Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
- Incorporate the updated list of deficient jurisdictions into your customer due diligence and transaction monitoring processes.
- Brief relevant staff on the implications of the new FATF statement for enhanced due diligence.
Who it affects
All Regional Rural Banks (RRBs), Principal Officers of RRBs, AML/CFT compliance teams
What is the purpose of this circular?
It updates RRBs on the latest FATF statement identifying jurisdictions with strategic AML/CFT deficiencies, so banks can adjust their risk assessments and compliance measures.
What action is required from the Principal Officer?
The Principal Officer must acknowledge receipt of this circular to the RBI Regional Office concerned, as per paragraph 4 of the circular.
Does this replace the earlier April 2011 circular?
Yes, this circular provides an updated FATF statement from June 24, 2011, superseding the earlier one from April 1, 2011.