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.
What you must do
- Review the enclosed FATF statement and the provided URLs for updated high-risk jurisdiction lists.
- Ensure your AML/CFT policies reflect the latest FATF guidance without disrupting legitimate cross-border transactions.
- Acknowledge receipt of this circular through your Nodal or Principal Officer.
Who it affects
All payment system operators authorized under the Payment and Settlement Systems Act, 2007, Nodal Officers and Principal Officers of these operators
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.