What changed
RBI issued a circular on September 6, 2012, referencing FATF's June 22, 2012 updates to its AML/CFT statement and compliance document. Payment system operators must now consider the latest FATF information on high-risk and non-cooperative jurisdictions.
What it means for you
Payment operators need to stay current with FATF's evolving AML/CFT guidance to mitigate risks from deficient regimes. This does not ban legitimate transactions but requires enhanced due diligence where flagged. Non-compliance could expose operators to regulatory scrutiny.
What you must do
- Review the enclosed FATF statement and compliance document from June 22, 2012.
- Update your AML/CFT policies to reflect the latest FATF guidance on high-risk jurisdictions.
- Ensure your nodal/principal officer acknowledges receipt of this circular.
- Continue legitimate trade and business transactions without restriction, but apply enhanced monitoring where needed.
Who it affects
All payment system operators authorized under the Payment and Settlement Systems Act, 2007, Nodal officers and principal officers of these operators
Does this circular ban transactions with certain countries?
No, it explicitly states that legitimate trade and business transactions with those jurisdictions are not precluded.
What is the source of the updated AML/CFT standards?
The Financial Action Task Force (FATF) updated its statement and compliance document on June 22, 2012, which RBI has enclosed for reference.