What changed
RBI issued a fresh circular on March 11, 2013, referring to its earlier December 12, 2012 letter. The update incorporates FATF's revised public statement and compliance document dated February 22, 2013, which identifies jurisdictions with deficiencies in AML/CFT regimes.
What it means for you
Banks and financial institutions must consider the updated FATF information for their AML/CFT assessments. While no blanket prohibition exists, lenders should apply appropriate measures and ensure their AML/CFT frameworks address the identified deficiencies.
What you must do
- Consider the enclosed FATF statement and update your institution's AML/CFT risk assessment accordingly.
- Advise your Principal Officer to acknowledge receipt of this circular to the RBI.
- Ensure that legitimate trade and business transactions with the listed jurisdictions are not precluded.
- Integrate the updated information into your AML/CFT frameworks.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions
Does this circular ban transactions with the listed jurisdictions?
No, the circular explicitly states it does not preclude legitimate trade and business transactions with these countries. However, banks must consider the updated FATF information.
What is the source of the updated list?
The list comes from FATF's public statement and its document 'Improving Global AML/CFT Compliance: On-Going Process' issued on February 22, 2013. The URLs for these documents are provided in the circular.