RBI/2010-11/468
A.P. (DIR Series) Circular No. 49
A.P. (FL/RL Series) Circular No. 11
April 06, 2011
To,
All Authorised Persons
Madam/ Dear Sir,
Know Your Customer (KYC) norms/Anti-Money Laundering (AML) standards/Combating
the Financing of Terrorism (CFT)/Obligation of Authorised Persons under
Prevention of Money Laundering Act, (PMLA), 2002, as amended by Prevention of
Money Laundering (Amendment) Act, 2009- Money changing activities
Attention of all Authorised Persons is invited to Paragraph 4.10 (b) of
F-Part-I, Annex to A.P. (DIR Series) Circular No.17 {A.P. (FL/RL Series)
Circular No.4} dated November 27, 2009 on the captioned subject.
- Financial Action Task Force (FATF) has issued a further Statement on October
22, 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 October
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).
- 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 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. Non-compliance with the guidelines
would attract penal provisions of the Acts concerned or Rules made there under.
Yours faithfully,
(Smt. Sujatha Elizabeth Prasad)
Chief General Manager