RBI/2010-2011/150
DBOD. AML.No.1930/14.01.036/2010-11
August 2, 2010
The Chairmen/CEOs of all Scheduled Commercial Banks(Excluding RRBs)/
Local Area Banks / All India Financial Institutions
Dear Sir,
Know Your Customer (KYC) Norms/ Anti- Money
Laundering (AML) Standards/ Combating of Financing of Terrorism (CFT)
Please refer to our letter
DBOD. AML.No.16477/14.01.034/2009-10 dated March
26, 2010 on risks arising from the deficiencies in AML/CFT regime of Iran,
Angola, Democratic People's Republic of Korea (DPRK), Ecuador, Ethiopia,
Pakistan, Turkmenistan and Sao Tome and Principe.
2. Financial Action Task Force (FATF) has issued a further Statement on June
25, 2010 on the subject (copy enclosed). It may be observed that the statement
divides the strategic AML/CFT deficient jurisdictions into two groups as under:
- Jurisdictions subject to FATF call on its members and other
jurisdictions to apply countermeasures to protect the international
financial system from the ongoing and substantial money laundering and
terrorist financing (ML/FT) risks emanating from the jurisdiction : Iran
- Jurisdictions with strategic AML/CFT deficiencies that have not
committed to an action plan developed with the FATF to address key
deficiencies as of June 2010. The FATF calls on its members to consider the
risks arising from the deficiencies associated with each jurisdiction:
Democratic People's Republic of Korea (DPRK), Sao Tome and Principe.
3. All banks and All India Financial Institutions are accordingly advised to
take into account risks arising from the deficiencies in AML/CFT regime of these
countries, while entering into business relationships and transactions with
persons (including legal persons and other financial institutions) from or in
these countries/ jurisdictions.
4. Please advise Principal Officer of your bank to acknowledge receipt of this
circular letter.
Yours faithfully,
(Vinay Baijal)
Chief General Manager
Encl: As above