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RBI Updates AML/CFT Guidance on High-Risk Jurisdictions

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/120 · issued 04 Jul 2013 · ~1 min read
Quick answerRBI has directed banks to consider FATF's June 21, 2013 update on jurisdictions with AML/CFT deficiencies. This does not ban legitimate trade but requires enhanced vigilance. Principal Officers must acknowledge receipt.

What changed

FATF updated its public statement and compliance document on June 21, 2013, listing jurisdictions with weak AML/CFT regimes. RBI has forwarded this update to all scheduled commercial banks (excluding RRBs), local area banks, and all India financial institutions, replacing the earlier March 2013 guidance.

What it means for you

Banks must factor in the updated FATF list when assessing customer and transaction risks from those jurisdictions. While legitimate business is not prohibited, lenders need to apply enhanced due diligence and monitor for potential money‑laundering or terrorist‑financing links.

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

Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions, Principal Officers responsible for AML/CFT compliance

❓ 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. The circular explicitly states it does not preclude Indian banks from legitimate trade and business with those countries. However, banks must consider the FATF information and apply enhanced due diligence.

What should our Principal Officer do after receiving this circular?

The Principal Officer must acknowledge receipt of the circular to RBI, as advised in paragraph 4 of the letter. They should also ensure the updated FATF statement is incorporated into the bank's AML/CFT procedures.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1067: DBOD.AML.No.314/14.01.001/2013-14 — "Anti-Money Laundering (AML) / Combating of Financing of Terrorism (CFT) - Standards" dated July 4, 2013”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/120 DBOD. AML.No. 314/14.01.001/2013-14 July 4, 2013 The Chairmen/CEOs of all Scheduled Commercial Banks(Excluding RRBs)/ Local Area Banks / All India Financial Institutions Dear Sir, Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) - Standards Please refer to our letter DBOD. AML.No.12913/14.01.001/ 2012-13 dated March 11, 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 June 21, 2013 ( copy enclosed ). The statement / document can be accessed from the following URLs also: http://www.fatf-gafi.org/topics/key/public-statement-june-2013.html and http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/documents/compliance-june-2013.html 3. All banks and financial institutions are accordingly advised to consider the information contained in the enclosed statement.  This, however, does not preclude Indian banks or financial institutions from legitimate trade and business transactions with these countries and jurisdictions. 4. Please advise your Principal Officer to acknowledge receipt of this circular letter. Yours faithfully, (Prakash Chandra Sahoo) Chief General Manager Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/120 · issued 04 Jul 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=8213&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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