What changed
RBI issued this circular to incorporate FATF's updated February 16, 2012 statement on AML/CFT risks from jurisdictions with weak regimes. It reinforces earlier guidance from February 15, 2012, and explicitly extends compliance obligations to all sub-agents under the Money Transfer Service Scheme.
What it means for you
Indian agents under MTSS should consider the FATF February 16 2012 statement when assessing cross‑border inward remittances and ensure their sub‑agents adhere to the same AML/CFT standards, as directed by the RBI circular.
What you must do
- Review FATF's February 16 2012 statement and update your AML/CFT screening procedures for cross‑border inward remittances.
- Ensure your sub‑agents under MTSS are informed and comply with these enhanced AML/CFT guidelines.
- Maintain records of transactions involving jurisdictions mentioned in the FATF statement as required under the PMLA.
- Advise your Principal Officer to acknowledge receipt of this circular to RBI.
Who it affects
Authorised Persons (Indian Agents) under the Money Transfer Service Scheme, Sub‑agents of Indian Agents under MTSS
Does this circular ban all remittances from FATF-flagged jurisdictions?
No. It advises Authorised Persons to consider the FATF statement but does not preclude legitimate transactions with those countries.
Who is responsible for sub-agent compliance?
The Indian Agent (Authorised Person) bears sole responsibility for ensuring their sub-agents adhere to these AML/CFT guidelines.