What changed
RBI issued a circular on April 11, 2012, referencing its earlier February 9, 2012 circular on AML/CFT risks. It now requires operators to factor in FATF's updated February 16, 2012 statement on jurisdictions with weak AML/CFT regimes.
What it means for you
Payment system operators must stay alert to FATF-identified high-risk jurisdictions and adjust their risk assessments accordingly. However, legitimate business with those countries remains unaffected. This reinforces RBI's expectation that operators maintain robust AML/CFT compliance frameworks.
What you must do
- Review FATF's February 16, 2012 statement and incorporate its findings into your AML/CFT risk assessment.
- Ensure your Nodal Officer or Principal Officer acknowledges receipt of this circular to RBI.
- Update internal policies to reflect FATF's updated list without blocking legitimate cross-border transactions.
Who it affects
All payment system operators authorized under the Payment and Settlement Systems Act, 2007, Nodal Officers and Principal Officers of these operators
Does this circular ban transactions with the listed jurisdictions?
No, the circular explicitly states it does not preclude legitimate trade and business transactions with those countries.
What is the source of the updated AML/CFT information?
The Financial Action Task Force (FATF) issued an updated statement on February 16, 2012, which RBI has enclosed with this circular.