Home › Circulars › RBI/2013-14/521

RBI Updates AML/CFT Standards for Payment Operators

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/521 · issued 18 Mar 2014 · ~1 min read
Quick answerRBI directs all PSS Act-authorized payment system operators to consider FATF's February 2014 update on high-risk jurisdictions. This does not block legitimate trade but requires enhanced vigilance.

What changed

RBI issued a circular on March 18, 2014, referencing FATF's updated statement and compliance document from February 14, 2014. Payment system operators must now factor in this latest FATF guidance on AML/CFT deficiencies in certain jurisdictions.

What it means for you

Banks and payment operators must align their AML/CFT checks with FATF's updated list of high-risk jurisdictions. While legitimate transactions are not prohibited, operators need to apply enhanced due diligence for cross-border flows involving these countries.

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 PSS Act, 2007, Nodal officers and principal officers of payment firms, Banks involved in cross-border payment processing

❓ 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 listed jurisdictions?

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

What should I do with the FATF documents referenced?

You must consider the information in FATF's updated statement and compliance document when designing or updating your AML/CFT controls.

Who needs to acknowledge receipt of this circular?

The nodal officer or principal officer of each payment system operator must acknowledge receipt.

📜 Read the original circular — full text as issued by RBI
RBI/2013-14/521 DPSS. CO.AD.No.1968/02.27.005/2013-14 March 18, 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.1503/02.27.005/2013-14 dated January 7, 2014 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 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/2013-14/521 · issued 18 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=8774&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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