What changed
RBI forwarded FATF's February 25, 2011 statement, which calls on listed jurisdictions to implement their action plans within the timeframe. Authorised persons must now consider this information and bring it to the notice of constituents and customers.
What it means for you
Banks and authorised persons must factor in FATF's updated list of deficient jurisdictions when conducting money changing activities. This reinforces the need for enhanced due diligence and compliance with AML/CFT standards, with penalties for non-compliance under FEMA and PMLA.
What you must do
- Review the enclosed FATF statement and consider the information for money changing activities.
- Notify your Principal Officer to acknowledge receipt of this circular.
- Bring the circular's contents to the notice of your constituents and customers.
- Ensure compliance with AML/CFT guidelines to avoid penal provisions under FEMA and PMLA.
Who it affects
All authorised persons handling money changing activities, Principal Officers of authorised entities, Constituents and customers of authorised persons
What is the purpose of this circular?
It advises authorised persons to consider FATF's February 2011 statement on jurisdictions with strategic AML/CFT deficiencies and to complete action plans within the timeframe.
What are the legal bases for these directions?
The directions are issued under Section 10(4) and Section 11(1) of FEMA, 1999, and under PMLA, 2002, as amended. Non-compliance attracts penal provisions.
Who needs to acknowledge receipt of this circular?
The Principal Officer of each authorised person must acknowledge receipt of this circular letter.