What changed
FATF identified jurisdictions with AML/CFT deficiencies and issued a statement on June 24, 2011. RBI now requires NBFCs/RNBCs to consider this statement, building on earlier KYC/AML guidance from May 2, 2011.
What it means for you
NBFCs and RNBCs must stay alert to FATF-flagged jurisdictions to avoid facilitating money laundering or terrorist financing. This reinforces existing KYC/AML obligations and may require enhanced due diligence for transactions linked to those jurisdictions.
What you must do
- Review the enclosed FATF statement dated June 24, 2011 for listed jurisdictions.
- Update internal KYC/AML policies to account for FATF-identified deficiencies.
- Train staff on enhanced due diligence for transactions involving flagged jurisdictions.
- Ensure compliance with earlier circular DNBS (PD) CC No 216/03.10.42/2010-11.
Who it affects
All Non-Banking Financial Companies (NBFCs), Residuary Non-Banking Companies (RNBCs)
What is the FATF statement about?
It identifies jurisdictions with strategic AML/CFT deficiencies and calls for action plan implementation within set timeframes.
Do I need to report anything to RBI?
The circular advises considering the statement; no specific reporting is mandated, but compliance with KYC/AML norms is expected.