RBI Clarification on Anti-Money Laundering and Combating of Financing of Terrorism

RBI/2012-13/443
RPCD.RRB.RCB.AML.No. 9753/07.51.018/2012-13

March 15, 2013

The Chairmen / CEOs of all Regional Rural Banks /
State and Central Co-operative Banks

Dear Sir,

Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) – Standards

Please refer to our letter RPCD.CO.RRB.RCB.AML.No. 6163/07.51.018/2012-13 dated December 17, 2012 on risks arising from the deficiencies in AML/CFT regime of certain jurisdictions.

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 (copy enclosed). 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. All Regional Rural Banks and State / Central Co-operative Banks are accordingly advised to consider the information contained in the enclosed statement. This, however, does not preclude Indian banks or financial institutions from legitimate trade and business transactions with these countries and jurisdictions.

4. Please advise Principal Officer of your bank to acknowledge receipt of this circular letter to our Regional Offices concerned.

Yours faithfully,

(Madhavi Sharma)
Chief General Manager

Encl: As above