Current · Source: Reserve Bank of India · RBI/2011-12/178 · issued 15 Sep 2011 · ~1 min read
Quick answerRBI directs NBFCs and RNBCs to consider FATF's June 24, 2011 statement on jurisdictions with strategic AML/CFT deficiencies, urging compliance with action plans.
The rule, in the simplest words
NBFCs (companies that lend money but are not banks) and RNBCs (companies that take deposits and must return them) must check a list from FATF (a global group that fights money laundering and terrorist funding) dated June 24, 2011.
This list names countries that have weak rules against money laundering and terrorist funding, and those countries must fix their problems by a deadline.
NBFCs and RNBCs must update their internal rules to be careful when dealing with customers or money from those listed countries.
Staff must be trained to do extra checks (enhanced due diligence) for any transactions linked to those flagged countries.
NBFCs and RNBCs must also follow an earlier RBI rule from May 2, 2011, about knowing their customers and stopping money laundering.
How it plays out — a real example
A KYC & compliance officer in Indore receives a loan application from a customer whose business address is in a country on the FATF list. Remembering the RBI's instruction, the officer pauses the application and asks for extra documents to prove where the money came from, ensuring the company doesn't accidentally help money launderers.
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)
❓ Common questions
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.
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/178
DNBS(PD).CC. No 242 /03.10.42 /2011-12
September 15, 2011
All Non Banking Financial Companies /
Residuary Non Banking Companies
Dear Sir,
Know Your Customer (KYC) Norms/ Anti- Money Laundering (AML) Standards/ Combating the Financing of Terrorism (CFT)
Please refer to our Circular DNBS (PD) CC No 216 /03.10.42/2010-11 dated May 02, 2011 on the captioned subject. The Financial Action Task Force (FATF) as a part of its ongoing review of compliance with the AML/CFT Standards, has identified certain jurisdictions which have strategic AML//CFT deficiencies.
2. FATF, has issued a statement dated 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 NBFCs/RNBCs are accordingly advised to consider the information contained in the enclosed statement.
Yours faithfully,
(Dr Tuli Roy)
Deputy General Manager
Encl: as above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/178 · issued 15 Sep 2011. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (All Non-Banking Financial Companies (NBFCs), Residuary Non-Banking Companies (RNBCs)), your first concrete step on “FATF Jurisdictions Update for NBFCs/RNBCs” is: “Review the enclosed FATF statement dated June 24, 2011 for listed jurisdictions.” (RBI issued this 15 Sep 2011).
Circular: RBI/2011-12/178 -- FATF Jurisdictions Update for NBFCs/RNBCs
Issued: 15 Sep 2011
Action required: Review the enclosed FATF statement dated June 24, 2011 for listed jurisdictions.
Action required: Update internal KYC/AML policies to account for FATF-identified deficiencies.
Action required: Train staff on enhanced due diligence for transactions involving flagged jurisdictions.
Action required: Ensure compliance with earlier circular DNBS (PD) CC No 216/03.10.42/2010-11.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=6710&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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