What changed
RBI issued a circular on August 23, 2012, referencing FATF's June 22, 2012 statement on AML/CFT deficiencies in certain jurisdictions. It advises authorised persons to consider this statement in their operations, building on earlier guidance from April 2012.
What it means for you
Banks and money changers must update their AML/CFT risk assessments using the latest FATF statement. While legitimate transactions with listed jurisdictions remain allowed, enhanced due diligence may be needed. The circular also extends these requirements to agents and franchisees, making franchisers liable for compliance.
What you must do
- Review FATF's June 22, 2012 statement and incorporate its findings into your AML/CFT risk framework for money changing activities.
- Ensure your agents and franchisees adhere to these guidelines, with clear accountability on franchisers.
- Notify your Principal Officer to acknowledge receipt of this circular and disseminate its contents to relevant constituents.
Who it affects
Authorised Persons handling money changing, Agents and franchisees of Authorised Persons, Principal Officers of Authorised Persons
Does this circular ban transactions with the jurisdictions flagged by FATF?
No, it explicitly states that legitimate transactions with those countries and jurisdictions are not precluded.
Who is responsible for ensuring agents and franchisees comply?
The franchiser (Authorised Person) bears sole responsibility for ensuring their agents and franchisees follow these AML/CFT guidelines.