Home › Circulars › RBI/2012-13/145

FATF Updates on High-Risk Jurisdictions: AML/CFT Compliance

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/145 · issued 27 Jul 2012 · ~1 min read
Quick answerRBI directs banks to review FATF's June 2012 update on jurisdictions with AML/CFT deficiencies. Banks must consider the updated statement for risk assessment but can continue legitimate trade with those countries.

What changed

FATF revised its public statement and ongoing compliance document on June 22, 2012, listing jurisdictions with strategic AML/CFT deficiencies. RBI now requires all scheduled commercial banks and financial institutions to factor this updated information into their risk management frameworks.

What it means for you

Banks should update their AML/CFT policies to reflect FATF's latest findings on high-risk jurisdictions. This does not ban transactions but advises consideration of the information for risk assessment. Lenders should ensure their compliance teams are aware of the revised FATF statements.

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

All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions

❓ 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 FATF-identified jurisdictions?

No. RBI explicitly states that this does not preclude legitimate trade and business transactions with those countries.

What should banks do with the FATF statement?

Banks must consider the information in the updated FATF statement for their AML/CFT compliance and risk assessment processes.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #1251: DBOD.AML.No.1594/14.01.001/2012-13 — "Anti-Money Laundering (AML) / Combating of Financing of Terrorism (CFT) - Standards" dated July 27, 2012”
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/145 DBOD. AML.No. 1594/14.01.001/2012-13 July 27, 2012 The Chairmen/CEOs of all Scheduled Commercial Banks(Excluding RRBs)/ Local Area Banks / All India Financial Institutions Dear Sir, Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) - Standards Please refer to our letter DBOD. AML.No.13738/14.01.001/ 2010-11 dated March 14, 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 the subject and document ‘Improving Global AML/CFT Compliance: on-going process’ on June 22, 2012 ( copy enclosed ). The statement / document can be accessed from the following URL also : http://www.fatf-gafi.org/documents/repository/fatfpublicstatement-22june2012.html and http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/documents/improvingglobalamlcftcomplianceon-goingprocess-22june2012.html 3. All banks and financial institutions are accordingly advised to consider the information contained in the enclosed statement. 4. This, however, does not preclude Indian banks or financial institutions from legitimate trade and business transactions with these countries and jurisdictions. 5. Please advise your Principal Officer to acknowledge receipt of this circular letter. Yours faithfully, (Sudha Damodar) Chief General Manager Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/145 · issued 27 Jul 2012. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=7472&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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