What changed
RBI issued a circular on April 8, 2011, referencing an earlier letter from January 18, 2011, and a FATF statement from February 25, 2011. It advises payment system operators to consider the information in the enclosed FATF statement regarding jurisdictions with AML/CFT deficiencies.
What it means for you
Payment system operators must stay vigilant about AML/CFT risks linked to listed jurisdictions. This may require enhanced due diligence or transaction monitoring for cross-border flows. Non-compliance could expose operators to regulatory scrutiny.
What you must do
- Review the enclosed FATF statement and identify any jurisdictions with strategic AML/CFT deficiencies.
- Ensure your AML/CFT policies address risks from transactions involving those jurisdictions.
- Have your Nodal Officer or Principal Officer acknowledge receipt of this circular.
- Update internal compliance procedures to align with FATF recommendations.
Who it affects
All payment system operators authorised under the PSS Act, 2007, Nodal Officers and Principal Officers of these operators
What is the purpose of this RBI circular?
It directs payment system operators to consider a FATF statement on jurisdictions with strategic AML/CFT deficiencies, ensuring compliance with international standards.
Who needs to acknowledge receipt of this circular?
The Nodal Officer or Principal Officer of each authorised payment system operator must acknowledge receipt.
What should operators do with the FATF statement?
Operators should consider the information in the statement and assess risks related to transactions involving the listed jurisdictions.