What changed
FATF issued a statement on October 22, 2010, updating the list of jurisdictions with strategic AML/CFT deficiencies. RBI now advises RRBs to consider this updated information, building on the earlier September 9, 2010 circular that first forwarded the FATF list.
What it means for you
RRBs should incorporate the latest FATF intelligence into their AML/CFT risk frameworks, especially for cross-border transactions or relationships with entities from listed jurisdictions. The circular advises RRBs to consider the information in the enclosed statement.
What you must do
- Review the enclosed FATF statement dated October 22, 2010, and update your bank's AML/CFT risk assessment accordingly.
- Ensure your Principal Officer formally acknowledges receipt of this circular to the concerned RBI Regional Office.
- Incorporate the updated list of deficient jurisdictions into your transaction monitoring and customer due diligence processes.
Who it affects
All Regional Rural Banks (RRBs), Principal Officers of RRBs, AML/CFT compliance teams at RRBs
What is the key action required from RRBs under this circular?
RRBs must consider the information in the enclosed FATF statement (October 22, 2010) regarding jurisdictions with strategic AML/CFT deficiencies and ensure their Principal Officer acknowledges receipt to the RBI Regional Office.
Does this circular replace the earlier September 9, 2010 circular?
No, it builds on it. The earlier circular forwarded the initial FATF statement; this one provides an updated statement from October 22, 2010, which RRBs are advised to consider.
What happens if an RRB does not comply with this advisory?
The circular does not specify penalties or consequences for non-compliance.