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FATF Updates AML/CFT Compliance: Banks Must Act

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/512 · issued 05 Mar 2014 · ~1 min read
Quick answerRBI directs banks to consider FATF's updated February 2014 statement on AML/CFT compliance deficiencies in certain jurisdictions. This does not block legitimate trade but requires enhanced vigilance.

What changed

FATF updated its public statement and compliance document on February 14, 2014, highlighting jurisdictions with AML/CFT regime deficiencies. RBI now requires banks to factor this updated information into their risk assessments.

What it means for you

Banks must incorporate FATF's latest findings into their AML/CFT frameworks, particularly for transactions involving flagged jurisdictions. While legitimate business is not prohibited, enhanced due diligence may be needed. Non-compliance could expose banks to regulatory and reputational risks.

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 scheduled commercial banks (excluding RRBs), Local Area Banks, All India Financial Institutions, Principal Officers responsible for AML/CFT compliance

❓ 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 ban transactions with the flagged jurisdictions?

No. The circular explicitly states it does not preclude legitimate trade and business transactions with those countries and jurisdictions.

What should our Principal Officer do after receiving this circular?

The Principal Officer must acknowledge receipt of this circular letter to RBI, as advised in paragraph 5 of the circular.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #940: DBOD.AML.No.15245/14.01.001/2013-14 — "Anti-Money Laundering (AML) / Combating of Financing of Terrorism (CFT) - Standards" dated March 5, 2014”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/512 DBOD. AML.No.15245/14.01.001/2013-14 March 05, 2014 The Chairmen/CEOs of all Scheduled Commercial Banks (Excluding RRBs)/ Local Area Banks / All India Financial Institutions Dear Sir, Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) - Standards Please refer to our letter DBOD. AML.No.10604/14.01.001/ 2013-14 dated November 29, 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 February 14, 2014 ( copy enclosed ). The statement/document can be accessed from the following URL also: http://www.fatf-gafi.org/media/fatf/documents/statements/Public-Statement-14-February-2014.pdf   and http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/documents/fatf-compliance-feb-2014.html 3. All banks and financial institutions are accordingly advised to consider the information contained in the enclosed statement. 4. This, however, does not preclude Indian banks or financial institutions from legitimate trade and business transactions with these countries and jurisdictions. 5. Please advise your Principal Officer to acknowledge receipt of this circular letter. Yours faithfully, (Prakash Chandra Sahoo) Chief General Manager Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/512 · issued 05 Mar 2014. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8764&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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