RBI/2011-12/185
A.P. (DIR Series) Circular No. 21
September 19, 2011
To
All Authorised Persons
Madam/ Sir
Anti-Money Laundering (AML) standards/Combating the Financing of Terrorism
(CFT) Standards - Money changing activities
Attention of the Authorised Persons is invited to
A.P.(DIR Series) Circular
No. 63 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 Korea (DPRK).
- This advisory does not preclude Authorised Persons 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 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 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