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.
What you must do
- 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
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.