RBI Updates AML/CFT Risks: Iran, DPRK & Other Jurisdictions
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2011-12/140 · issued 03 Aug 2011 · ~1 min read
Quick answerRBI advises cooperative banks to assess AML/CFT risks from Iran, DPRK, and eight other jurisdictions (Bolivia, Cuba, Ethiopia, Kenya, Myanmar, Sri Lanka, Syria, Turkey) per FATF's June 2011 update. Legitimate trade with Iran remains allowed.
What changed
FATF updated its statement on June 24, 2011, urging members to apply counter‑measures against Iran and DPRK because of ongoing ML/FT risks, and highlighted eight jurisdictions with strategic AML/CFT deficiencies. RBI now advises banks to factor these risks into their business relationships and transactions.
What it means for you
Banks should enhance due diligence for transactions involving these countries to mitigate ML/FT risks. The advisory does not block legitimate trade with Iran, but banks are expected to consider the identified risks when entering business relationships.
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 Iran, DPRK, and the eight listed jurisdictions.
Instruct relationship managers to apply enhanced due diligence for transactions with persons or entities from these countries.
Ensure your Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
Review and strengthen transaction monitoring systems for cross-border flows involving these jurisdictions.
Who it affects
State and Central Co-operative Banks, Principal Officers of banks, Compliance and AML teams, Trade finance departments
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 23:47 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).
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.
Which countries are newly flagged for strategic AML/CFT deficiencies?
Bolivia, Cuba, Ethiopia, Kenya, Myanmar, Sri Lanka, Syria, and Turkey are identified as having strategic deficiencies that have not been sufficiently addressed.
What action must banks take immediately?
Banks must consider the AML/CFT risks from these jurisdictions in all business relationships and transactions, and the Principal Officer must acknowledge receipt to the 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/2011-12/140
RPCD.CO.RCB.AML.No.1287/07.02.12/2011-12
August 03, 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.12295/07.02.12/2010-11 dated April 27, 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 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, Syria and Turkey.
5. 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.
6. 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/2011-12/140 · issued 03 Aug 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=6652&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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