RBI Updates AML/CFT Guidance for MTSS Agents on FATF Jurisdictions
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/485 · issued 02 May 2013 · ~1 min read
Quick answerRBI directs Indian Agents under MTSS to factor in FATF's updated February 2013 statement on AML/CFT compliance gaps in certain jurisdictions when processing cross-border inward remittances, without banning legitimate transactions.
The rule, in the simplest words
Indian Agents (companies that send money from abroad to India) must check FATF's (a global group that fights money laundering) updated list from February 22, 2013, of countries with weak rules against money laundering and terrorism funding.
When processing money coming into India from other countries, these agents must do extra checks (enhanced due diligence) on transactions from those listed countries, but they can still allow legitimate (legal) transfers.
Indian Agents are fully responsible for making sure their sub-agents (smaller partners) also follow these rules.
The Principal Officer (the person in charge of following rules) must tell the RBI (India's central bank) that they received this circular (official notice).
How it plays out — a real example
Ravi, a KYC & compliance officer in Indore who also works as a sub-agent for an Indian Agent under MTSS, receives a remittance from a customer's relative in a country on FATF's updated list. He remembers the new rule and asks the customer for extra documents to prove the money is from a legal job, then processes the transfer without blocking it, just as the RBI allows.
What changed
RBI issued a circular on May 2, 2013, referencing FATF's updated statement from February 22, 2013, on jurisdictions with AML/CFT deficiencies. It advises Authorised Persons (Indian Agents) under the Money Transfer Service Scheme to consider this updated information in their operations.
What it means for you
Indian Agents must now incorporate FATF's latest findings into their AML/CFT risk assessments for cross-border inward remittances. This does not prohibit transactions with those jurisdictions but requires enhanced due diligence. The responsibility extends to sub-agents, with Indian Agents ensuring compliance across their network.
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
Review FATF's updated statement from February 22, 2013, on high-risk and non-cooperative jurisdictions.
Update your AML/CFT policies and procedures for cross-border inward remittances under MTSS accordingly.
Ensure all sub-agents are informed and comply with these guidelines, with Indian Agents taking full responsibility.
Have your Principal Officer acknowledge receipt of this circular to RBI.
Who it affects
Authorised Persons (Indian Agents) under Money Transfer Service Scheme, Sub-Agents of Indian Agents under MTSS, Principal Officers of these entities
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 15:40 IST
Status change: withdrawn11 Jul 2026, 02:13 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Does this circular ban remittances from the listed jurisdictions?
No, it explicitly states that legitimate transactions with those countries and jurisdictions are not precluded.
Who is responsible for sub-agent compliance?
The Indian Agents are solely responsible for ensuring their sub-agents adhere to these AML/CFT guidelines.
What legal authority backs this circular?
It is issued under FEMA 1999 (Sections 10(4) and 11(1)) and the PMLA 2002, as amended, along with related rules.
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/485
A.P. (DIR Series) Circular No. 102
May 2, 2013
To,
All Authorised Persons, who are Indian Agents under Money Transfer Service Scheme.
Madam/ Dear Sir,
Anti-Money Laundering (AML) standards/Combating the Financing of Terrorism (CFT) Standards - Cross Border Inward Remittance under Money Transfer Service Scheme
Please refer to our A.P.(DIR Series) Circular No. 71 dated January 10, 2013 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 ( DBOD.AML.No.12913/14.01.001/2012-13 dated March 11, 2013 ). The statement /document can be accessed from the following URL 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. Authorised Persons (Indian Agents) are accordingly advised to consider the information contained in the enclosed statement.
4. This, however, does not preclude Authorised Persons (Indian Agents) from legitimate transactions with these countries and jurisdictions.
5. These guidelines would also be applicable mutatis mutandis to all Sub-Agents of the Indian Agents under MTSS and it will be the sole responsibility of the APs (Indian Agents) to ensure that their Sub-agents also adhere to these guidelines.
6. Authorised Persons (Indian Agents) may bring the contents of this circular to the notice of their constituents concerned.
7. Please advise your Principal Officer to acknowledge receipt of this circular letter.
8. The directions contained in this Circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and also under the, Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009 and Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005 as amended from time to time and are without prejudice to permission/approvals, if any, required under any other law.
Yours faithfully,
( Rudra Narayan Kar )
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/485 · issued 02 May 2013. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
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=7958&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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