What changed
RBI has forwarded the February 25, 2011 FATF statement identifying jurisdictions with strategic AML/CFT deficiencies. This updates the earlier April 6, 2011 circular and requires agents to consider the new information in their operations.
What it means for you
Indian Agents under MTSS must integrate the updated FATF list into their AML/CFT screening processes for cross-border inward remittances. Non-compliance with these guidelines attracts penal provisions under FEMA and PMLA, making it critical to update internal controls.
What you must do
- Review the enclosed FATF statement and update your AML/CFT risk assessment for cross-border inward remittances.
- Ensure your Principal Officer acknowledges receipt of this circular.
- Communicate the updated requirements to all relevant constituents and customers.
- Align your transaction monitoring systems to flag remittances from the listed jurisdictions.
Who it affects
All Authorised Persons acting as Indian Agents under the Money Transfer Service Scheme, Principal Officers of these entities, Customers and constituents using MTSS for cross-border inward remittances
What is the key action required from Indian Agents under this circular?
Agents must consider the information in the enclosed FATF statement on jurisdictions with strategic AML/CFT deficiencies and apply it to their cross-border inward remittance operations.
What are the legal bases for these directions?
The circular is issued under Section 10(4) and Section 11(1) of FEMA, 1999, and under PMLA, 2002, as amended. Non-compliance attracts penal provisions under these Acts.
Does this circular replace the earlier April 6, 2011 circular?
No, it supplements it by forwarding the updated FATF statement from February 25, 2011, which agents must now consider.