What changed
FATF updated its public statement and compliance document on June 22, 2012, regarding global AML/CFT deficiencies. RBI now requires urban co-operative banks to factor this updated information into their AML/CFT risk assessments.
What it means for you
Urban co-operative banks must align their AML/CFT due diligence with the latest FATF list of high-risk and non-cooperative jurisdictions. This does not block legitimate business but demands enhanced scrutiny. Banks should update their internal risk frameworks and ensure compliance teams are aware of the revised FATF guidance.
What you must do
- Review the enclosed FATF statement and update your AML/CFT risk assessment accordingly.
- Ensure your Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
- Incorporate the updated FATF list into your customer due diligence and transaction monitoring processes.
- Continue to allow legitimate trade and business transactions with listed jurisdictions, but apply enhanced scrutiny where warranted.
Who it affects
All AD Category I Primary (Urban) Co-operative Banks, Principal Officers of these banks, AML/CFT compliance teams
Does this circular prohibit transactions with countries mentioned in the FATF statement?
No, the circular explicitly states it does not preclude legitimate trade and business transactions with those countries or jurisdictions.
What is the key action required from the bank's Principal Officer?
The Principal Officer must acknowledge receipt of this circular to the concerned RBI Regional Office.
Where can we access the updated FATF statement?
The statement is enclosed with the circular and also available on the FATF website at the URLs provided in the circular.