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RBI Advisory on AML/CFT Risks from Iran, DPRK, and Other Jurisdictions

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2011-12/156 · issued 18 Aug 2011 · ~2 min read

Quick answerRBI directs all payment system operators to assess and mitigate money laundering and terrorist financing risks from Iran, DPRK, and jurisdictions with strategic AML/CFT deficiencies, including Bolivia, Cuba, Ethiopia, Kenya, Myanmar, Sri Lanka, Syria, and Turkey.

What changed

RBI updated its earlier April 8, 2011 circular by incorporating FATF's June 24, 2011 statement, which calls for counter-measures against Iran and DPRK due to ongoing ML/FT risks. It also added a list of jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress, urging operators to consider these risks in business relationships.

What it means for you

Payment system operators must now apply enhanced due diligence for transactions involving Iran, DPRK, and the listed deficient jurisdictions. This does not prohibit legitimate trade with Iran but requires careful risk assessment. Operators need to update their AML/CFT policies and ensure compliance to avoid regulatory action.

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

Review and update AML/CFT policies to incorporate FATF's updated guidance on Iran, DPRK, and listed deficient jurisdictions.
Conduct enhanced due diligence for all transactions and relationships with persons or entities from these countries.
Ensure your nodal officer acknowledges receipt of this circular and maintains records.
Train staff on identifying and reporting suspicious transactions linked to these high-risk jurisdictions.

Who it affects

All payment system operators authorized under the Payment and Settlement Systems Act, 2007, Nodal officers and principal officers of these operators, Compliance and AML/CFT teams within payment systems

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 23:40 IST
Status change: withdrawn 03 Aug 2026, 04:00 IST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 legitimate trade and business transactions with Iran. However, operators must apply counter-measures to protect the financial system from ML/FT risks.

Which countries are listed as having strategic AML/CFT deficiencies?

The FATF statement identifies Bolivia, Cuba, Ethiopia, Kenya, Myanmar, Sri Lanka, Syria, and Turkey as jurisdictions with deficiencies that have not made sufficient progress.

What action is required from the nodal officer?

The nodal officer or principal officer must acknowledge receipt of this circular, ensuring compliance with the advisory.

📜 Read the original circular — full text as issued by RBI

RBI/2011-12/156 
 DPSS. CO. AD. No 314./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.2318 /02.27.005/2010-11 dated April 8, 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 payment system operators authorised under the Payment and Settlement Systems Act, 2007 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 and Syria, Turkey.
 5. All the Payment System Operators authorised under Payment and Settlement Systems Act, 2007 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.  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/2011-12/156 · 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=6679&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.