Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Standards / Combating of Financing of Terrorism (CFT)

Know Your Customer (KYC) Norms / Anti-Money Laundering (AML) Standards / Combating of Financing of Terrorism (CFT)

RBI/2009-10/377
UBD.BPD. (PCB).Cir. No.53 /14.01.062/2009-10

 April 1, 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 (PCB) CO.BPD.Cir.No.33/14.01.062/2009-10 dated December 17, 2009 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 February 18, 2010 on the subject (copy enclosed). It may be observed that the instant FATF statement divides the strategic AML/CFT deficient jurisdictions into three groups as under:

1. 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
2. Jurisdictions with strategic AML/CFT deficiencies that have not committed to an action plan developed with the FATF to address key deficiencies as of February 2010. The FATF calls on its members to consider the risks arising from the deficiencies associated with each jurisdiction: Angola, Democratic People's Republic of Korea (DPRK), Ecuador and Ethiopia.
3. Jurisdictions previously publicly identified  by the FATF as having strategic AML/ CFT  deficiencies, which remain to be addressed as of February 2010: Pakistan, Turkmenistan and 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. 

4.  The Compliance Officer / Principal Officer of the bank should acknowledge receipt of this circular to our Regional Office concerned.

Yours faithfully

(Monisha Chakraborty)
Deputy General Manager

Encl: As above.

List of AD I category UCBs