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Money changing activities – Anti-Money Laundering (AML) standards/Combating the Financing of Terrorism (CFT) Standards

RBI/2012-13/484
A.P. (DIR Series) Circular No. 101

May 2, 2013

To,

All Authorised Persons

Madam/ Dear Sir,

Anti-Money Laundering (AML) standards/Combating the Financing of Terrorism (CFT) Standards – Money changing activities

Please refer to our A.P.(DIR Series) Circular No. 70 dated January 10, 2013 on risks arising from the deficiencies in AML/CFT regime of certain jurisdiction.

2. Financial Action Task Force (FATF) has updated its Statement on the subject and document ‘Improving Global AML/CFT Compliance: on-going process’ on February 22, 2013 (DBOD.AML.No.12913/14.01.001/2012-13 dated March 11, 2013). The statement /document can be accessed from the following URLs also :

http://www.fatf-gafi.org/documents/documents/fatfpublicstatement22february2013.html and

http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/documents/improvingglobalamlcftcomplianceon-goingprocess-22february2013.html

3. Authorised Persons are accordingly advised to consider the information contained in the enclosed statement.

4. This, however, does not preclude Authorised Persons from legitimate transactions with these countries and jurisdictions.

5. These guidelines are also applicable mutatis mutandis to all agents/ franchisees of Authorised Persons and it will be the sole responsibility of the franchisers to ensure that their agents / franchisees also adhere to these guidelines.

6. Authorised Persons may bring the contents of this circular to the notice of their constituents concerned.

7. Please advise your Principal Officer to acknowledge receipt of this circular letter.

8. The directions contained in this Circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and also under the, Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009 and Prevention of Money-Laundering (Maintenance of Records of the Nature and Value of Transactions, the Procedure and Manner of Maintaining and Time for Furnishing Information and Verification and Maintenance of Records of the Identity of the Clients of the Banking Companies, Financial Institutions and Intermediaries) Rules, 2005 as amended from time to time and are without prejudice to permission /approvals, if any, required under any other law.

Yours faithfully,

(Rudra Narayan Kar)
Chief General Manager-in-Charge

Tags: Financial Action Task Force on Money LaunderingForeign Exchange Management ActModern Language Associationmoney launderingprevention of money launderingPrevention of Money Laundering Act 2002Terrorism financing

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