HomeCirculars › RBI/2013-14/431

RBI Updates AML/CFT Standards for Payment Operators

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/431 · issued 07 Jan 2014 · ~1 min read
Quick answerRBI directs all PSS Act-authorized payment system operators to review FATF's updated October 2013 statement on AML/CFT compliance, emphasizing risks from deficient jurisdictions. Operators must consider this information without restricting legitimate trade.

What changed

FATF updated its global AML/CFT compliance statement on October 18, 2013, replacing the earlier September 2013 version. RBI now requires all payment system operators under the PSS Act, 2007 to factor in this latest FATF guidance.

What it means for you

Payment operators must stay alert to evolving international AML/CFT standards and adjust their risk assessments accordingly. While no immediate operational changes are mandated, ignoring FATF updates could expose banks to regulatory scrutiny or compliance gaps.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

All payment system operators authorized under the Payment and Settlement Systems Act, 2007, Nodal Officers and Principal Officers of these operators

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Does this circular restrict business 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 AML/CFT guidance?

The Financial Action Task Force (FATF) issued the updated statement on October 18, 2013, which RBI has enclosed for reference.

📜 Read the original circular — full text as issued by RBI
RBI/2013-14/431 DPSS. CO. AD. No. 1503/02.27.005/2013-14 January 7, 2014 Chief Executive Officers of All the Payment System Operators Authorised under the PSS Act, 2007 Dear Sir Anti- Money Laundering (AML) / Combating of Financing of Terrorism (CFT) - Standards Please refer to our circular DPSS.CO.AD.No.626/02.27.005/2012-13 dated September 13, 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 October 18, 2013 ( copy enclosed ). The statement / document can be accessed from the following URLs also: http://www.fatf-gafi.org/media/fatf/documents/statements/18-October-2013.pdf and http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/documents/fatf-compliance-oct-2013.html 3. All the Payment System Operators authorised under the Payment and Settlement Systems Act, 2007 are accordingly advised to consider the information contained in the enclosed statement. This, however, does not preclude Payment System Operators from legitimate trade and business transactions with these countries and jurisdictions. 4. Nodal Officer/Principal Officer may please acknowledge receipt of this circular. Yours faithfully (K C Anand) General Manager Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/431 · issued 07 Jan 2014. The plain-English explanation above is BankPulse’s own independent summary.
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Topics: Digital Payments / UPI
Key dataSee the live numbers behind this topic: RBI Penalty Tracker, Credit & Deposit Growth — updated from official RBI data.
Key termsPlain-English definitions of terms in this circular — see the full Indian banking glossary. UPI · KYC / AML · Deposit insurance (DICGC) · NEFT / RTGS

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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8675&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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