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RBI Updates AML/CFT Standards for Payment Operators

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/497 · issued 08 May 2013 · ~1 min read
Quick answerRBI directs all PSS Act-authorized payment system operators to review FATF's updated February 2013 statement on AML/CFT compliance and high-risk jurisdictions, without blocking legitimate trade.

What changed

FATF updated its public statement and ongoing compliance document on February 22, 2013, regarding AML/CFT deficiencies in certain jurisdictions. RBI now requires all payment system operators to consider this updated information in their compliance frameworks.

What it means for you

Payment operators must align their AML/CFT processes with the latest FATF guidance to avoid regulatory gaps. The circular does not prohibit legitimate transactions with listed jurisdictions, but operators should enhance due diligence where risks are flagged.

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 payment system operators authorized under the Payment and Settlement Systems Act, 2007, Nodal officers and principal officers of these operators

❓ 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, it explicitly states that it does not preclude legitimate trade and business transactions with those countries and jurisdictions.

What is the source of the updated AML/CFT guidance?

The Financial Action Task Force (FATF) updated its statement and compliance document on February 22, 2013, which RBI has enclosed and directed operators to consider.

📜 Read the original circular — full text as issued by RBI
RBI/2012-13/497 DPSS. CO. AD. No. 2051/02.27.005/2012-13 May 8, 2013 Chief Executive Officers of All the Payment System Operators Authorised under the PSS Act, 2007 Dear Sir Anti- Money Laundering (AML) / Combating of Financing of Terrorism (CFT) - Standards Please refer to our circular DPSS.CO.AD.No.1120 /02.27.005/2012-13 dated January 8, 2013 on risk 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 processes’ on February 22, 2013 ( copy enclosed ). 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. All the Payment System Operators authorised under the Payment and Settlement Systems Act, 2007 are accordingly advised to consider the information contained in the enclosed Statement. 4. This, however, does not preclude Payment System Operators from legitimate trade and business transactions with these countries and jurisdictions. 5. Nodal Officer/Principal Officer may please acknowledge receipt of this circular. Yours faithfully (K C Anand) Deputy General Manager Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/497 · issued 08 May 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=7975&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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