What changed
FATF issued an updated statement and document 'Improving Global AML/CFT Compliance: On-Going Process' on June 21, 2013. RBI now requires UCBs to factor this update into their AML/CFT risk assessments.
What it means for you
UCBs must stay alert to evolving global AML/CFT standards and adjust their due diligence for transactions involving jurisdictions flagged by FATF. The circular does not ban business with those countries but expects banks to apply enhanced scrutiny where needed.
What you must do
- Review the enclosed FATF statement and the linked documents for updated high-risk jurisdictions.
- Ensure your AML/CFT policies reflect the latest FATF guidance on deficient regimes.
- Have the Principal Officer acknowledge receipt of this circular to the respective RBI Regional Office.
Who it affects
All AD Category I Primary (Urban) Co-operative Banks, Principal Officers of UCBs
Does this circular prohibit 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 is the source of the updated AML/CFT guidance?
The Financial Action Task Force (FATF) issued the updated statement and compliance document on June 21, 2013, which is accessible via the URLs provided in the circular.