RBI/2011-12/186
A.P. (DIR Series) Circular No. 22
September 19, 2011
To,
All Authorised Persons, who are Indian Agents under Money Transfer Service
Scheme.
Madam/ Sir,
Anti-Money Laundering (AML) standards/Combating the Financing of
Terrorism (CFT) Standards - Cross Border Inward Remittance under
Money Transfer Service Scheme
Attention of all the Authorised Persons, who are Indian Agents under Money
Transfer Service Scheme (MTSS) is invited to A.P.(DIR Series) Circular No.64
dated May 20, 2011 on risks arising from the deficiencies in AML/CFT regime of
Iran and Democratic People’s Republic of Korea (DPRK).
- Financial Action Task Force (FATF) has issued a further Statement on June 24,
2011 on the subject (copy enclosed) calling its members and other jurisdictions
to apply counter-measures to protect the international financial system from the
ongoing and substantial money laundering and terrorist financing (ML/FT) risks
emanating from Iran and Democratic People’s Republic of Korea (DPRK).
- This advisory does not preclude Authorised Persons (Indian Agents) entering
into legitimate trade and business transactions with Iran.
- FATF has also identified Jurisdiction with strategic AML/CFT deficiencies
that have not made sufficient progress in addressing the deficiencies or have
not committed to an action plan developed with the FATF to address the
deficiencies. The FATF calls on its members to consider the risks arising from
the deficiencies associated with each jurisdiction as described in the Statement
: Bolivia, Cuba, Ethiopia, Kenya, Myanmar, Sri Lanka, Syria and Turkey.
- Authorised Persons (Indian Agents) 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.
- Authorised Persons (Indian Agents) may bring the contents of this circular to
the notice of their constituents concerned.
- Please advise your Principal Officer to acknowledge receipt of this circular
letter.
- The directions contained in this Circular have been issued under Sections
10(4) and 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. Non-compliance with the guidelines
would attract penal provisions of the Acts concerned or Rules made there under.
Yours faithfully,
(Meena Hemchandra)
Chief General Manager-in-Charge