UCBs: Updated AML/CFT Risks from Iran, DPRK & Other Jurisdictions
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2011-12/141 · issued 03 Aug 2011 · ~2 min read
Quick answerRBI updates urban co-operative banks on FATF's June 2011 statement, urging enhanced due diligence for Iran and DPRK due to ongoing money laundering/terrorist financing risks, and flags eight other jurisdictions with strategic AML/CFT deficiencies.
What changed
FATF updated its statement on June 24, 2011, reiterating counter-measures against Iran and DPRK for substantial money laundering and terrorist financing risks. It also identified Bolivia, Cuba, Ethiopia, Kenya, Myanmar, Sri Lanka, Syria, and Turkey as jurisdictions with strategic AML/CFT deficiencies lacking sufficient progress.
What it means for you
Urban co-operative banks must reassess their AML/CFT risk frameworks for transactions involving Iran, DPRK, and the eight flagged jurisdictions. While legitimate trade with Iran is not prohibited, banks need to apply enhanced scrutiny and consider the risks from these countries' deficiencies when onboarding or transacting with entities from those 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
Update your AML/CFT policies to incorporate FATF's June 2011 statement on Iran and DPRK.
Conduct enhanced due diligence for business relationships and transactions involving persons or entities from Iran, DPRK, Bolivia, Cuba, Ethiopia, Kenya, Myanmar, Sri Lanka, Syria, and Turkey.
Ensure your Compliance Officer/Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
Review and document risk assessments for any existing exposures to the flagged jurisdictions.
Who it affects
All AD Category I Primary (Urban) Co-operative Banks, Compliance Officers and Principal Officers of UCBs, Branches handling cross-border transactions with flagged jurisdictions
❓ 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 prohibit all transactions with Iran?
No. The circular explicitly states it does not preclude legitimate trade and business transactions with Iran. However, banks must apply counter-measures and enhanced due diligence due to the ongoing money laundering and terrorist financing risks identified by FATF.
Which new jurisdictions are flagged for strategic AML/CFT deficiencies?
FATF identified Bolivia, Cuba, Ethiopia, Kenya, Myanmar, Sri Lanka, Syria, and Turkey as jurisdictions with strategic deficiencies that have not made sufficient progress. Banks must consider these risks when dealing with entities from these countries.
What action is required from the Compliance Officer?
The Compliance Officer or Principal Officer must acknowledge receipt of this circular to the concerned RBI Regional Office. This ensures the bank has formally noted the updated AML/CFT guidance.
📜 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/2011-12/141
UBD.CO.BPD (PCB) Cir.No.1/14.01.062/2011-12
August 03, 2011
The Chief Executive Officer of
All AD Category I Primary (Urban) Co-operative Banks
Madam/Dear Sir,
Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) –
Standards – Primary (Urban) Co-operative Banks
Please refer to our circular UBD. CO.BPD (PCB).Cir.No.9/14.01.062/2010-11 dated May 02, 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 risks emanating from Iran and DPRK.
3. This advisory note does not preclude Urban Co-operative 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. Urban Co-operative 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. The Compliance Officer/Principal Officer of the bank should acknowledge receipt of this circular to our Regional Office concerned .
Yours faithfully,
(M. Nanda Kumar)
General Manager
Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/141 · 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=6653&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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