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RBI Updates AML/CFT Standards Based on FATF October 2012 Statement

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/368 · issued 08 Jan 2013 · ~1 min read
Quick answerRBI directs all PSS Act-authorized payment system operators to review and act on FATF's updated October 2012 AML/CFT statement, which lists high-risk jurisdictions. This does not block legitimate trade with those countries.

What changed

FATF released an updated public statement and compliance document on October 19, 2012, revising its earlier guidance on AML/CFT deficiencies in certain jurisdictions. RBI now requires all payment system operators to consider this updated information in their risk assessments.

What it means for you

Banks and payment operators must align their AML/CFT screening processes with FATF's latest list of high-risk and non-cooperative jurisdictions. While legitimate transactions remain allowed, enhanced due diligence may be needed for counterparties from those countries.

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 payment system operators authorized under the Payment and Settlement Systems Act, 2007, Banks offering payment services, Compliance and AML/CFT teams at 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 and jurisdictions.

What should I do if my institution has exposure to a high-risk jurisdiction?

Apply enhanced due diligence as per your AML/CFT policy, referencing FATF's updated statement, and ensure compliance with RBI's existing guidelines.

📜 Read the original circular — full text as issued by RBI
RBI/2012-13/368 DPSS. CO. AD. No. 1120/02.27.005/2012-13 January 8, 2013 Chief Executive Officers of All the Payment System Operators Authorised under the PSS Act, 2007 Dear Sir Anti- Money Laundering (AML) / Combating of Financing of Terrorism (CFT) - Standards Please refer to our circular DPSS.CO.AD.No.426 /02.27.005/2012-13 dated September 6, 2012 on risk 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 processes’ 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 the Payment System Operators authorised under the Payment and Settlement Systems Act, 2007 are accordingly advised to consider the information contained in the enclosed Statement. 4. This, however, does not preclude Payment System Operators from legitimate trade and business transactions with these countries and jurisdictions. 5. Nodal Officer/Principal Officer may please acknowledge receipt of this circular. Yours faithfully ( Nilima Ramteke ) General Manager Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/368 · issued 08 Jan 2013. 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=7795&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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