What changed
FATF identified certain jurisdictions with strategic AML/CFT deficiencies and issued a statement on October 22, 2010, calling for action plan implementation. RBI now advises all NBFCs/RNBCs to consider the information in that statement.
What it means for you
NBFCs/RNBCs must stay alert to FATF-flagged jurisdictions to avoid inadvertently facilitating money laundering or terrorist financing. This reinforces existing KYC/AML obligations and may require enhanced due diligence for transactions involving those jurisdictions.
What you must do
- Review the enclosed FATF statement and identify listed jurisdictions.
- Update your KYC/AML policies to account for risks from those jurisdictions.
- Ensure compliance officer/principal officer acknowledges receipt to the Regional Office of DNBS.
- Monitor transactions involving flagged jurisdictions for suspicious activity.
Who it affects
All Non-Banking Financial Companies (NBFCs), Residuary Non-Banking Companies (RNBCs)
What is the FATF statement about?
It lists jurisdictions with strategic deficiencies in anti-money laundering and combating financing of terrorism standards, as of October 22, 2010.
Do we need to take any action beyond acknowledging receipt?
Yes, you must consider the information in the statement and integrate it into your KYC/AML processes, especially for transactions involving those jurisdictions.
Who should submit the acknowledgment?
The compliance officer or principal officer of the NBFC/RNBC must submit it to the concerned Regional Office of DNBS.