What changed
RBI issued a circular on February 9, 2012, referencing earlier August 2011 advisories on AML/CFT deficiencies. It now requires operators to factor in FATF's updated October 28, 2011 statement, which was enclosed with the circular.
What it means for you
Payment system operators must stay alert to evolving international AML/CFT standards and adjust their risk assessments accordingly. The circular clarifies that these updates do not prohibit legitimate business with the listed jurisdictions, so lenders can continue normal trade relationships while enhancing due diligence.
What you must do
- Review the enclosed FATF statement from October 28, 2011, and update your AML/CFT risk frameworks accordingly.
- Ensure your nodal or principal officer acknowledges receipt of this circular as instructed.
- Do not restrict legitimate trade or business transactions with the identified jurisdictions solely based on this advisory.
Who it affects
All payment system operators authorized under the Payment and Settlement Systems Act, 2007, Nodal officers and principal officers of these operators
Does this circular ban transactions with certain countries?
No, it explicitly states that it does not preclude legitimate trade and business transactions with the jurisdictions mentioned in FATF's statement.
What should I do with the enclosed FATF statement?
You must consider the information in the statement when updating your AML/CFT policies and ensure your nodal officer acknowledges receipt of the circular.