What changed
RBI issued this circular to update authorised persons on FATF's latest statement regarding AML/CFT risks from certain jurisdictions. It follows a prior circular from February 15, 2012, and requires consideration of the enclosed FATF statement.
What it means for you
Banks and money changers must factor in FATF's updated risk assessment when dealing with transactions involving flagged jurisdictions. While legitimate business is not barred, enhanced due diligence may be needed. The responsibility extends to all agents and franchisees, placing compliance onus on franchisers.
What you must do
- Review the enclosed FATF statement dated February 16, 2012, and assess its implications for your money changing operations.
- Ensure your AML/CFT policies account for risks from jurisdictions highlighted by FATF.
- Communicate these guidelines to all agents and franchisees, and verify their adherence.
- Have your Principal Officer acknowledge receipt of this circular to RBI.
Who it affects
All authorised persons (banks, money changers, etc.), Agents and franchisees of authorised persons, Principal Officers of authorised entities
Does this circular ban transactions with the mentioned jurisdictions?
No, it explicitly states that it does not preclude legitimate transactions with those countries and jurisdictions.
Who is responsible for ensuring agents and franchisees comply?
The franchiser (authorised person) bears sole responsibility for ensuring their agents and franchisees adhere to these AML/CFT guidelines.