Home › Circulars › RBI/2011-12/155

RBI Directs Payment Operators on FATF AML/CFT Compliance

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2011-12/155 · issued 18 Aug 2011 · ~2 min read
Quick answerRBI has directed all authorised payment system operators to consider the FATF's June 2011 statement on jurisdictions with strategic AML/CFT deficiencies, reinforcing earlier guidance from April 2011.

What changed

RBI issued a circular on August 18, 2011, forwarding the FATF's June 24, 2011 statement on jurisdictions with AML/CFT deficiencies. This updates the earlier April 8, 2011 circular that had shared the FATF's initial list. Operators are now required to consider the new statement and ensure their compliance frameworks address these risks.

What it means for you

Payment system operators must integrate the updated FATF list into their AML/CFT risk assessments and due diligence processes. This ensures alignment with global standards and helps prevent misuse of payment systems for money laundering or terrorist financing. Non-compliance could expose operators to regulatory scrutiny and reputational risk.

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 payment system operators authorised under the Payment and Settlement Systems Act, 2007, Compliance and AML/CFT teams at payment operators, Nodal Officers and Principal Officers of these entities

❓ Common questions

Regulatory timeline

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

What is the purpose of this circular?

It directs payment system operators to consider the FATF's June 2011 statement on jurisdictions with strategic AML/CFT deficiencies, ensuring they stay updated on global risks and align their compliance measures.

Do I need to take any action if my operator already complies with AML/CFT norms?

Yes, you must review the new FATF statement and update your risk assessments and screening processes accordingly. Also, ensure your Nodal Officer acknowledges receipt of this circular.

What happens if we ignore this circular?

Ignoring it could lead to regulatory non-compliance, increased scrutiny from RBI, and potential penalties. It also raises the risk of your systems being exploited for illicit activities.

📜 Read the original circular — full text as issued by RBI
RBI/2011-12/155 DPSS. CO. AD. No 313/02.27.005/2011-12 August 18, 2011 All Payment System Operators Authorised under the PSS Act, 2007 Dear Sir Anti- Money Laundering (AML) / Combating of Financing of Terrorism (CFT) - Standards Please refer to our circular DPSS.CO.AD.No. 2317/02.27.005/2010-11 dated April 8, 2011 forwarding the Financial Action Task Force (FATF) Statement identifying   a list of jurisdictions which have strategic AML/CFT deficiencies. 2. FATF, has further issued a Statement on June 24, 2011 ( copy enclosed ) calling upon jurisdictions listed in the Statement to complete the implementation of their action plan within the timeframe. The FATF, in the Statement has called upon its members to consider the information given in the Statement. 3. All the Payment System Operators authorised under the Payment and Settlement Systems Act, 2007 are accordingly advised to consider the information contained in the enclosed Statement. 4. Nodal Officer/Principal Officer should acknowledge receipt of this circular. Yours faithfully, (K. Sivaraman ) General Manager Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/155 · issued 18 Aug 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=6680&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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