What changed
FATF updated its public statement on October 28, 2011, regarding jurisdictions with strategic AML/CFT deficiencies. RBI now advises all RRBs to take note of this updated information, building on its earlier July 29, 2011 circular on the same subject.
What it means for you
RRBs must integrate FATF's latest jurisdictional risk assessments into their AML/CFT policies. While legitimate business with those countries remains permitted, banks face heightened scrutiny and must ensure enhanced due diligence for transactions involving these jurisdictions.
What you must do
- Review the enclosed FATF statement and update your AML/CFT risk assessment accordingly.
- Ensure your Principal Officer acknowledges receipt of this circular to the concerned RBI Regional Office.
- Brief compliance and operations teams on the updated jurisdictional risks.
- Do not restrict legitimate trade, but apply enhanced monitoring for transactions with listed jurisdictions.
Who it affects
All Regional Rural Banks (RRBs), Principal Officers of RRBs, AML/CFT compliance teams at RRBs
Does this circular ban transactions with the listed jurisdictions?
No. The circular explicitly states it does not preclude Indian banks or financial institutions from legitimate trade and business transactions with those countries.
What should our Principal Officer do after receiving this circular?
The Principal Officer must acknowledge receipt of this circular letter to the concerned RBI Regional Office.