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FATF AML/CFT Update for RRBs and Co-op Banks

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2011-12/449 · issued 15 Mar 2012 · ~1 min read
Quick answerRBI directs RRBs and cooperative banks to consider FATF's February 2012 statement on AML/CFT deficiencies in certain jurisdictions. This does not block legitimate trade but requires banks to factor the updated risks into their compliance processes.

What changed

FATF updated its public statement on February 16, 2012, regarding jurisdictions with strategic AML/CFT deficiencies. RBI has forwarded this update to all Regional Rural Banks and State/Central Co-operative Banks, replacing the earlier January 2012 advisory.

What it means for you

Banks must incorporate the latest FATF findings into their risk assessment and customer due diligence frameworks. While legitimate transactions remain unaffected, enhanced scrutiny may be needed for dealings with listed jurisdictions. Non-compliance could expose banks to regulatory and reputational risks.

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

Who it affects

Regional Rural Banks (RRBs), State Co-operative Banks (StCBs), Central Co-operative Banks (DCCBs), Principal Officers of these banks

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Does this circular prohibit transactions with the listed jurisdictions?

No. The circular explicitly states that it does not preclude Indian banks from legitimate trade and business transactions with those countries. However, banks must consider the FATF-identified risks in their AML/CFT processes.

What action is required from the Principal Officer?

The Principal Officer must acknowledge receipt of this circular to the concerned RBI Regional Office, as per paragraph 5 of the circular.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1365: RPCD.CO.RRB.RCB.AML.No.9177/07.02.12/2011-12 — "Anti-Money Laundering (AML) / Combating of Financing of Terrorism (CFT) - Standards" dated March 15, 2012”
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/449 RPCD.CO.RRB.RCB.AML.No. 9177/07.02.12/2011-12 March 15, 2012 The Chairmen / CEOs, All Regional Rural Banks and State / Central Co-operative Banks Dear Sir, Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) - Standards Please refer to our letters RPCD.CO.RRB.AML.No.7081/03.05.28 (A)/2011-12 and RPCD.CO.RCB.AML.No.7036/07.02.12/2011-12 dated January 16, 2012 , on risks arising from the deficiencies in AML/CFT regime of certain jurisdictions. 2. Financial Action Task Force (FATF) has updated its Statement on February 16, 2012 on the subject ( copy enclosed ). 3. All Regional Rural Banks / State and Central Co-operative Banks are accordingly advised to consider the information contained in the enclosed Statement. 4. This, however, does not preclude Indian Banks from legitimate trade and business transactions with these countries and jurisdictions. 5. Please advise Principal Officer of your bank to acknowledge receipt of this circular letter to our concerned Regional Office. Yours faithfully, (C.D.Srinivasan) Chief General Manager Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/449 · issued 15 Mar 2012. The plain-English explanation above is BankPulse’s own independent summary.
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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=7068&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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