Current · Source: Reserve Bank of India · RBI/2013-14/225 · issued 04 Sep 2013 · ~1 min read
Quick answerRBI directs Indian Agents under MTSS to consider updated FATF statements on AML/CFT compliance from June 2013. Agents must ensure sub-agents follow these guidelines. Legitimate transactions with listed jurisdictions remain allowed.
The rule, in the simplest words
Indian Agents (banks that send money from abroad to India) must check the FATF (a global group that fights money laundering) list of risky countries updated on June 21, 2013.
Agents must make sure their sub-agents (smaller partners) also follow these rules, and the Agent is responsible if they don't.
You can still send money to or from those risky countries, but you must do extra checks (like asking more questions about the money's source).
The bank's Principal Officer (the person in charge of following these rules) must tell the RBI (India's central bank) that they got this circular.
How it plays out — a real example
A KYC & compliance officer in Indore receives a remittance from a customer in a country on the FATF high-risk list. She updates her AML/CFT checklist, asks the customer for proof of the sender's identity and the reason for the transfer, and then processes the transaction. She also calls her sub-agent in a nearby town to remind them to do the same for any similar transfers.
What changed
RBI issued a circular on September 4, 2013, referencing FATF's updated June 21, 2013 statement on AML/CFT compliance. It advises Authorised Persons (Indian Agents) under the Money Transfer Service Scheme to factor in the new FATF information. The circular also extends these guidelines to sub-agents, with Indian Agents responsible for their adherence.
What it means for you
Indian banks acting as MTSS agents must update their AML/CFT risk assessments based on FATF's latest list of high-risk jurisdictions. This does not ban transactions but requires enhanced due diligence. Banks must also ensure their sub-agents comply, shifting compliance responsibility upstream.
What you must do
Review FATF's June 2013 statement and compliance document from the provided URLs.
Update internal AML/CFT policies for cross-border inward remittances under MTSS.
Ensure sub-agents are informed and adhere to the updated guidelines.
Have your Principal Officer acknowledge receipt of this circular to RBI.
Who it affects
Authorised Persons (Indian Agents) under MTSS, Sub-agents of Indian Agents under MTSS, Banks handling cross-border inward remittances
❓ Common questions
Does this circular ban transactions with listed jurisdictions?
No, it explicitly states that legitimate transactions with these countries and jurisdictions are not precluded.
Who is responsible for sub-agent compliance?
Indian Agents (Authorised Persons) bear sole responsibility for ensuring their sub-agents adhere to these AML/CFT guidelines.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/225
A.P.(DIR Series) Circular No.35
September 04, 2013
To,
All Authorised Persons, who are Indian Agents under Money Transfer Service Scheme.
Madam/ Dear Sir,
Anti-Money Laundering (AML) standards/Combating the Financing of Terrorism (CFT) Standards - Cross Border Inward Remittance under Money Transfer Service Scheme
Please refer to our A.P.(DIR Series) Circular No. 102 dated May 02, 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. The statement /document can be accessed from the following URLs :
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. Authorised Persons (Indian Agents) are accordingly advised to consider the information contained in the enclosed statement.
4. This, however, does not preclude Authorised Persons (Indian Agents) from legitimate transactions with these countries and jurisdictions.
5. These guidelines would also be applicable mutatis mutandis to all Sub-Agents of the Indian Agents under MTSS and it will be the sole responsibility of the APs (Indian Agents) to ensure that their Sub-agents also adhere to these guidelines.
6. Authorised Persons (Indian Agents) may bring the contents of this circular to the notice of their constituents concerned.
7. Please advise your Principal Officer to acknowledge receipt of this circular letter.
8. The directions contained in this Circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and also under the, Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009 and Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005 as amended from time to time and are without prejudice to permission/approvals, if any, required under any other law.
Yours faithfully,
( Rudra Narayan Kar )
Chief General Manager-in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/225 · issued 04 Sep 2013. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (Authorised Persons (Indian Agents) under MTSS, Sub-agents of Indian Agents under MTSS, Banks handling cross-border inward remittances), your first concrete step on “RBI Updates AML/CFT Guidance for MTSS Agents” is: “Review FATF's June 2013 statement and compliance document from the provided URLs.” (RBI issued this 04 Sep 2013).
Circular: RBI/2013-14/225 -- RBI Updates AML/CFT Guidance for MTSS Agents
Issued: 04 Sep 2013
Action required: Review FATF's June 2013 statement and compliance document from the provided URLs.
Action required: Update internal AML/CFT policies for cross-border inward remittances under MTSS.
Action required: Ensure sub-agents are informed and adhere to the updated guidelines.
Action required: Have your Principal Officer acknowledge receipt of this circular to RBI.
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
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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=8373&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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