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.
What you must do
- Review FATF's February 22, 2013 statement and compliance document from the provided URLs.
- Update your AML/CFT policies to reflect the updated high-risk and non-cooperative jurisdiction list.
- Ensure your nodal/principal officer acknowledges receipt of this circular to RBI.
- Continue to allow legitimate trade and business transactions with affected jurisdictions without undue restriction.
Who it affects
All payment system operators authorized under the Payment and Settlement Systems Act, 2007, Nodal officers and principal officers of these operators
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.