What changed
FATF issued an updated public statement and compliance document on February 22, 2013, replacing its earlier version. RBI now requires RRBs and state/central co-operative banks to factor this new information into their AML/CFT risk assessments.
What it means for you
Banks must stay current with FATF's evolving list of jurisdictions with weak AML/CFT regimes. While no transactions are banned, lenders should apply enhanced due diligence for any exposure to these countries. The circular reinforces that compliance is an ongoing process, not a one-time check.
What you must do
- Review FATF's February 22, 2013 statement and compliance document linked in the circular.
- Update your bank's AML/CFT risk assessment to reflect the latest high-risk jurisdictions.
- Ensure your Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
- Brief relationship managers and compliance teams on the updated FATF guidance.
Who it affects
Regional Rural Banks (RRBs), State Co-operative Banks, Central Co-operative Banks, Principal Officers of these banks
Does this circular prohibit 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 consider the FATF information for enhanced due diligence.
What is the source of the updated AML/CFT information?
The Financial Action Task Force (FATF) issued its updated public statement and 'Improving Global AML/CFT Compliance: On-Going Process' document on February 22, 2013. RBI has enclosed a copy and provided URLs for access.
Who needs to acknowledge receipt of this circular?
The Principal Officer of each RRB and state/central co-operative bank must acknowledge receipt to the concerned RBI Regional Office.