Updated FATF AML/CFT Guidance for RRBs and Co-op Banks
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/340 · issued 17 Dec 2012 · ~1 min read
Quick answerRBI directs RRBs and cooperative banks to review the FATF's October 2012 updated statement on high-risk jurisdictions and AML/CFT compliance gaps, but clarifies that legitimate trade with those countries remains unaffected.
What changed
FATF issued an updated public statement and compliance document on October 19, 2012, replacing its earlier version. RBI now asks all RRBs and state/central cooperative banks to factor this new information into their AML/CFT risk assessments.
What it means for you
Banks must align their customer due diligence and transaction monitoring with the latest FATF-identified jurisdictions having strategic AML/CFT deficiencies. However, this does not ban business with those countries—only requires enhanced vigilance. The circular reinforces that compliance gaps in certain jurisdictions pose risks that banks need to proactively manage.
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
Download and review the enclosed FATF statement and the 'Improving Global AML/CFT Compliance' document from the provided URLs.
Update your bank's AML/CFT risk assessment and policies to reflect the October 2012 FATF updates on high-risk jurisdictions.
Ensure your Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
Communicate the updated FATF guidance to relevant compliance and operations teams.
Who it affects
Regional Rural Banks (RRBs), State Co-operative Banks (StCBs), Central Co-operative Banks (DCCBs), Principal Officers of these banks
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 16:51 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Does this circular prohibit transactions with countries listed by FATF?
No. The circular explicitly states that it does not preclude Indian banks from legitimate trade and business with those jurisdictions. However, enhanced due diligence is expected.
What should our Principal Officer do after receiving this circular?
The Principal Officer must acknowledge receipt of this circular to the concerned RBI Regional Office, as directed in paragraph 5 of the circular.
Where can we access the updated FATF statement?
The circular provides two URLs: one for the FATF Public Statement dated October 19, 2012, and another for the ongoing compliance document. Both are hosted on the FATF website.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1191: RPCD.CO.RRB.RCB.AML.No.6163/07.51.018/2012-13 — "Anti Money Laundering (AML) / Combating of Financing of Terrorism (CFT) - Standards" dated December 17, 2012”
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/340
RPCD.CO.RRB.RCB.AML.No. 6163/07.51.018/2012-13
December 17, 2012
The Chairmen / CEOs of all Regional Rural Banks /
State and Central Co-operative Banks
Dear Sir,
Anti Money Laundering (AML)/ Combating of Financing of Terrorism (CFT) - Standards
Please refer to our circular RPCD.CO.RRB.RCB.AML.No.838/03.05.28(A)/2012-13 dated July 30, 2012 on risks arising from the deficiencies in AML/CFT regime of certain jurisdictions.
2. Financial Action Task Force 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 https://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/documents/improvingglobalamlcftcomplianceon-goingprocess-19october2012.html
3. All Regional Rural Banks/State and central Co-operative Banks 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 Principal Officer of your bank to acknowledge receipt of this circular letter to our Regional Office concerned.
Yours faithfully,
(I.S. Negi)
General Manager
Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/340 · issued 17 Dec 2012. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=7759&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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