What changed
FATF updated its public statement and compliance document on June 21, 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 procedures with FATF's latest findings to mitigate risks from jurisdictions with weak regimes. This does not ban transactions but demands enhanced due diligence. Non-compliance could expose operators to regulatory scrutiny.
What you must do
- Review FATF's June 2013 statement and compliance document for updated high-risk jurisdictions.
- Update your AML/CFT policies to reflect the new information from FATF.
- Ensure your transaction monitoring systems account for risks from identified jurisdictions.
- Acknowledge receipt of this circular via your Nodal or Principal Officer.
Who it affects
Payment system operators authorized under PSS Act, 2007, Nodal and Principal Officers of payment operators
Does this circular ban transactions with certain countries?
No, it explicitly states that legitimate trade and business transactions with these jurisdictions are not precluded.
What is the source of the updated AML/CFT information?
The Financial Action Task Force (FATF) updated its statement and compliance document on June 21, 2013, which is referenced in the circular.