RBI/2010-11/490
RPCD.CO.RCB.AML.No.12295/07.02.12/2010-11

April 27, 2011

The Chairmen / CEOs of all State / Central Co-operative Banks

Dear Sir,

Anti - Money Laundering (AML)/Combating of Financing of Terrorism (CFT) - Standards

Please refer to our letter RPCD.CO.RCB.AML.No.9886/07.02.12/2010-11 dated March 7, 2011 on risks arising from the deficiencies in AML/CFT regime of Iran and Democratic People's Republic of Korea (DPRK).

2. Financial Action Task Force (FATF) has issued a further Statement on February 25, 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).

3. All banks 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. Please advise Principal Officer of your bank to acknowledge receipt of this letter to our concerned Regional Office.

Yours faithfully,

(C.D.Srinivasan)
Chief General Manager

Encl : As above