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FATF AML/CFT Update: New Jurisdiction Risks

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/326 · issued 12 Dec 2012 · ~1 min read
Quick answerRBI circular dated December 12, 2012 directs banks to review FATF's October 19, 2012 update on AML/CFT compliance gaps in certain jurisdictions. While no ban on legitimate trade, banks must factor these risks into their due diligence processes.

What changed

FATF released an updated public statement and compliance document on October 19, 2012, highlighting jurisdictions with AML/CFT deficiencies. RBI has forwarded this update to all scheduled commercial banks and financial institutions, advising them to consider the information in their risk assessments.

What it means for you

Banks must incorporate FATF's latest findings into their AML/CFT frameworks, particularly for transactions involving flagged jurisdictions. This does not prohibit legitimate business but requires enhanced scrutiny. Non-compliance could expose banks to regulatory action and reputational risk.

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 ban transactions with the listed jurisdictions?

No. The circular explicitly states it does not preclude legitimate trade and business transactions with those countries. However, banks must apply enhanced due diligence based on FATF's findings.

What should our Principal Officer do?

The Principal Officer must acknowledge receipt of this circular letter to RBI, as stated in paragraph 5 of the notification.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #1195: DBOD.AML.No.8422/14.01.001/2012-13 — "Anti-Money Laundering (AML) / Combating of Financing of Terrorism (CFT) - Standards" dated December 12, 2012”
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/326 DBOD. AML.No. 8422 /14.01.001/2012-13 December 12, 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.1594/14.01.001/2012-13 dated July 27, 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 October 19, 2012 ( copy enclosed ). The statement / document can be accessed from the following URL also: http://www.fatf-gafi.org/media/fatf/documents/FATF%20Public%20Statement%2019%20October%202012.pdf and http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/documents/improvingglobalamlcftcomplianceon-goingprocess-19october2012.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/2012-13/326 · issued 12 Dec 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=7745&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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