AD I Category UCBs - KYC Norms / AML Standards / Combating of Financing of Terrorism
UBD.BPD. (PCB).Cir. No. 7 /14.01.062/2010-11
August 12, 2010
The Chief Executive Officers of
All AD I Category Urban Co-operative Banks
(As per List enclosed)
Dear Sir / Madam,
Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Standards / Combating of Financing of Terrorism (CFT)
Please refer to our circular UBD.BPD.(PCB) Cir.No.53/14.01.062/2009-10 dated April 1, 2010 on risks arising from the deficiencies in AML / CFT regime of Iran,Uzbekistan, Pakistan, Turkmenistan, Sao Tome and Principe.
2. The 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. UCBs 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. The Compliance Officer / Principal Officer of the bank should acknowledge receipt of this circular to our Regional Office concerned.
(M. Nanda Kumar)
Deputy General Manager
Encl: As above.