What changed
FATF updated its public statement and compliance document on June 21, 2013, regarding jurisdictions with AML/CFT deficiencies. RBI now requires all RRBs and state/central cooperative banks to factor in this latest information. The earlier circular from March 15, 2013, is referenced but not explicitly superseded; banks should consider the updated statement.
What it means for you
Banks must stay current with FATF's evolving list of high-risk jurisdictions to avoid regulatory penalties. While legitimate transactions are not banned, enhanced due diligence may be needed for customers or transactions linked to these countries. Non-compliance could expose banks to reputational and supervisory risks.
What you must do
- Review the enclosed FATF statement and the two linked URLs for the updated list of non-compliant jurisdictions.
- Ensure your AML/CFT policies and screening systems incorporate the latest FATF designations.
- Instruct your Principal Officer to acknowledge receipt of this circular to the concerned RBI regional office.
Who it affects
Regional Rural Banks (RRBs), State Cooperative Banks, Central Cooperative Banks, Principal Officers of these banks
Does this circular ban all transactions with the listed jurisdictions?
No. The circular explicitly states it does not preclude legitimate trade and business transactions with those countries. However, banks must consider the FATF information and apply appropriate risk mitigation measures.
What should our Principal Officer do after receiving this circular?
The Principal Officer must send an acknowledgment of receipt to the relevant RBI regional office, as specified in paragraph 4 of the circular.
Where can we find the updated FATF statement?
The circular provides two URLs: one for the FATF public statement and another for the compliance document, both updated on June 21, 2013. A physical copy was also enclosed with the circular.