What changed
FATF updated its public statement and compliance document on February 14, 2014, regarding AML/CFT deficiencies in certain jurisdictions. RBI now requires RRBs and co-operative banks to factor this updated information into their risk assessments.
What it means for you
Banks must review FATF's latest list of high-risk jurisdictions and adjust their AML/CFT controls accordingly. While legitimate transactions are not prohibited, enhanced due diligence may be needed for dealings with these countries. The circular reinforces the importance of staying current with global AML standards.
What you must do
- Access and review FATF's updated statement and compliance document from the provided URLs.
- Incorporate the updated jurisdiction information into your bank's AML/CFT risk assessment framework.
- Ensure your Principal Officer acknowledges receipt of this circular to the respective RBI regional office.
- Advise relevant staff on the updated FATF guidance without disrupting legitimate trade transactions.
Who it affects
Regional Rural Banks (RRBs), State Co-operative Banks, Central Co-operative Banks, Principal Officers of these banks
Does this circular prohibit transactions with the listed jurisdictions?
No, the circular explicitly states it does not preclude Indian banks from legitimate trade and business transactions with those countries and jurisdictions.
What action is required from the Principal Officer?
The Principal Officer must acknowledge receipt of this circular letter to the concerned RBI regional office.
Where can we find the updated FATF statement?
The statement and document are available at the URLs provided in the circular: 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.