RBI Updates NBFCs on FATF AML/CFT Compliance Statement
Current · Source: Reserve Bank of India · RBI/2013-14/155 · issued 23 Jul 2013 · ~1 min read
Quick answerRBI directs all NBFCs to review the updated FATF statement on AML/CFT compliance from June 21, 2013, which lists jurisdictions with deficiencies. NBFCs must consider this information but can still pursue legitimate business with those countries.
The rule, in the simplest words
Non-Banking Financial Companies (NBFCs) [like loan or investment companies, but not banks] must review the updated list of countries with weak [anti-money laundering/combating financing of terrorism] AML/CFT rules
NBFCs should be extra careful when doing business with these countries, but can still do legitimate business with them
They must keep detailed records of the extra checks they do on these countries' transactions to avoid any [money laundering/terrorism financing] risks
How it plays out — a real example
["A compliance officer in Mumbai, working for a large NBFC, spends her day reviewing the updated FATF statement and ensuring her company's risk assessment frameworks are up-to-date to reflect the latest findings on high-risk jurisdictions. She works closely with the risk management team to monitor transactions with listed countries, making sure they are legitimate and comply with AML/CFT regulations. By doing so, she helps her company avoid any potential compliance gaps and reputational risks."]
What changed
FATF updated its public statement and compliance document on June 21, 2013, regarding AML/CFT risks from certain jurisdictions. RBI communicated this update to all NBFCs, replacing the earlier April 18, 2013 circular on the same subject.
What it means for you
NBFCs must stay alert to FATF-identified high-risk jurisdictions to avoid AML/CFT compliance gaps. The circular does not ban transactions but expects enhanced due diligence for dealings with those countries.
What you must do
Review the enclosed FATF statement and the linked documents for updated jurisdiction lists.
Update your AML/CFT risk assessment frameworks to reflect the latest FATF findings.
Ensure your compliance team monitors transactions with listed jurisdictions without disrupting legitimate trade.
Maintain records of due diligence measures taken for any dealings with these countries.
Who it affects
All Non-Banking Financial Companies (NBFCs) excluding Residuary Non-Banking Companies, Compliance and risk management teams at NBFCs
❓ Common questions
Does this circular prohibit business with the listed jurisdictions?
No, the circular explicitly states it does not preclude NBFCs from legitimate trade and business transactions with those countries and jurisdictions.
What should NBFCs do with the FATF statement?
NBFCs are advised to consider the information in the FATF statement for their AML/CFT compliance processes, particularly regarding jurisdictions with deficiencies.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/155
DNBS(PD).CC. No 352/03.10.42/2013-14
July 23, 2013
All Non Banking Financial Companies excluding
Residuary Non Banking Companies
Dear Sir/Madam,
Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) - Standards
Please refer to DNBS (PD).CC.No.323/03.10.42/ 2012-13 dated April 18, 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 June 21, 2013 on the captioned subject and document ‘Improving Global AML/CFT Compliance: On-Going Process’ ( copy enclosed ). The statement /document can be accessed from the following URL 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 NBFCs are accordingly advised to consider the information contained in the enclosed statement. This, however, does not preclude NBFCs from legitimate trade and business transactions with these countries and jurisdictions.
Yours faithfully,
(Sindhu Pancholy)
Deputy General Manager
Encl: as above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/155 · issued 23 Jul 2013. The plain-English explanation above is BankPulse’s own independent summary.
Maintain records of due diligence measures taken for any dealings with these countries.
📜 Compliance
Review the enclosed FATF statement and the linked documents for updated jurisdiction lists.
Update your AML/CFT risk assessment frameworks to reflect the latest FATF findings.
Ensure your compliance team monitors transactions with listed jurisdictions without disrupting legitimate trade.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (All Non-Banking Financial Companies (NBFCs) excluding Residuary Non-Banking Companies, Compliance and risk management teams at NBFCs), your first concrete step on “RBI Updates NBFCs on FATF AML/CFT Compliance Statement” is: “Review the enclosed FATF statement and the linked documents for updated jurisdiction lists.” (RBI issued this 23 Jul 2013).
Action required: Review the enclosed FATF statement and the linked documents for updated jurisdiction lists.
Action required: Update your AML/CFT risk assessment frameworks to reflect the latest FATF findings.
Action required: Ensure your compliance team monitors transactions with listed jurisdictions without disrupting legitimate trade.
Action required: Maintain records of due diligence measures taken for any dealings with these countries.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8264&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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