What changed
FATF issued an updated statement on October 18, 2013, regarding jurisdictions with AML/CFT deficiencies. RBI now requires RRBs and co-op banks to factor this update into their risk assessments.
What it means for you
Banks must stay current with FATF's evolving list of high-risk jurisdictions to avoid regulatory gaps. While legitimate business with these countries is not banned, enhanced due diligence may be needed for transactions involving them.
What you must do
- Review the enclosed FATF statement and update your AML/CFT risk assessment accordingly.
- Ensure your Principal Officer acknowledges receipt of this circular to the regional RBI office.
- Monitor transactions with listed jurisdictions for potential money laundering or terrorist financing risks.
Who it affects
All Regional Rural Banks (RRBs), State and Central Co-operative Banks, Principal Officers of these banks
Does this circular ban transactions with the listed jurisdictions?
No, it explicitly states that Indian banks are not precluded from legitimate trade and business transactions with those countries.
What should our Principal Officer do after receiving this circular?
The Principal Officer must acknowledge receipt of this circular letter to the concerned regional RBI office.