What changed
RBI issued a circular on April 20, 2012, referencing an earlier circular (February 23, 2012) on AML/CFT risks. It incorporates FATF's updated statement (February 16, 2012) and advises urban co-operative banks to factor this information into their compliance processes.
What it means for you
Urban co-operative banks must stay alert to FATF-identified jurisdictions with weak AML/CFT regimes, but this does not block legitimate transactions. Banks need to ensure their compliance teams review the updated FATF statement and adjust risk assessments accordingly.
What you must do
- Review the enclosed FATF statement (updated February 16, 2012) and update your AML/CFT risk assessments.
- Ensure the Principal Officer acknowledges receipt of this circular to the respective RBI Regional Office.
- Continue to allow legitimate trade and business transactions with the listed jurisdictions without disruption.
- Brief your compliance and operations teams on the updated FATF guidance.
Who it affects
All AD Category I Primary (Urban) Co-operative Banks, Principal Officers of these banks, Compliance and AML/CFT teams
Does this circular ban transactions with certain countries?
No, it explicitly states that legitimate trade and business transactions with these jurisdictions are not precluded.
What must the Principal Officer do after receiving this circular?
The Principal Officer must acknowledge receipt of this circular to the concerned RBI Regional Office.