What changed
RBI issued a circular on January 16, 2012, forwarding FATF's updated statement from October 28, 2011, on AML/CFT risks. It replaces earlier guidance from August 3, 2011, and requires co-operative banks to factor in the new information.
What it means for you
Co-operative banks must stay alert to jurisdictions flagged by FATF for weak AML/CFT controls, but can continue normal business with them. The circular reinforces existing obligations without introducing new penalties or restrictions.
What you must do
- Review the enclosed FATF statement and update your AML/CFT risk assessment accordingly.
- Ensure your Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
- Advise all relevant staff on the updated FATF guidance and its implications for transaction monitoring.
Who it affects
State Co-operative Banks (StCBs), Central Co-operative Banks (DCCBs), Principal Officers of co-operative banks
Does this circular ban transactions with the listed jurisdictions?
No, it explicitly states that Indian banks can continue legitimate trade and business with those countries and jurisdictions.
What should our Principal Officer do after receiving this circular?
The Principal Officer must acknowledge receipt of this circular letter to the concerned RBI Regional Office.
Is this a new requirement or an update?
It is an update to earlier letters from August 3, 2011, incorporating FATF's latest statement from October 28, 2011.