What changed
FATF released an updated statement on October 18, 2013, regarding jurisdictions with deficiencies in AML/CFT regimes. RBI now advises banks to factor this updated information into their risk assessments.
What it means for you
Banks must review their AML/CFT procedures in light of FATF's latest findings. While no new restrictions are imposed, lenders should exercise enhanced due diligence for transactions involving listed jurisdictions.
What you must do
- Ensure your Principal Officer acknowledges receipt of this circular.
- Update internal AML/CFT risk frameworks to reflect FATF's October 2013 statement.
- Brief compliance teams on the updated list of high-risk jurisdictions.
- Continue legitimate trade and business transactions but apply appropriate scrutiny.
Who it affects
Scheduled Commercial Banks (excluding RRBs), Local Area Banks, All India Financial Institutions
Does this circular prohibit transactions with the listed jurisdictions?
No, the circular explicitly states it does not preclude legitimate trade and business transactions with those countries.
What is the source of the updated information?
The Financial Action Task Force (FATF) issued the updated statement on October 18, 2013, which is available on FATF's website.