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RBI Updates AML/CFT Guidance on High-Risk Jurisdictions

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/434 · issued 11 Mar 2013 · ~1 min read
Quick answerRBI has updated its AML/CFT advisory based on FATF's February 22, 2013 statement. Banks must consider the latest list of jurisdictions with strategic deficiencies when assessing money laundering and terrorist financing risks, but legitimate trade with these countries is not banned.

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.

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 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.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #1168: DBOD.AML.No.12913/14.01.001/2012-13 — "Anti-Money Laundering (AML) / Combating of Financing of Terrorism (CFT) - Standards" dated March 11, 2013”
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/434 DBOD. AML.No. 12913/14.01.001/2012-13 March 11, 2013 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.8422/14.01.001/ 2012-13 dated December 12, 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 February 22, 2013 ( copy enclosed ). The statement / document can be accessed from the following URLs also: http://www.fatf-gafi.org/documents/documents/fatfpublicstatement22february2013.html and http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/documents/improvingglobalamlcftcomplianceon-goingprocess-22february2013.html 3. All banks and financial institutions are accordingly advised to consider the information contained in the enclosed statement. This, however, does not preclude Indian banks or financial institutions from legitimate trade and business transactions with these countries and jurisdictions. 4. Please advise your Principal Officer to acknowledge receipt of this circular letter. Yours faithfully, (Prakash Chandra Sahoo) Chief General Manager Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/434 · issued 11 Mar 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=7885&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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