RBI/2012-13/160
UBD.BPD (AD) Cir.No. 1 /14.01.062/2012-13

August 3, 2012

The Chief Executive Officer of
All AD Category I Primary (Urban) Co-operative Banks

Madam/Dear Sir,

Anti-Money Laundering (AML)/Combating of Financing of Terrorism (CFT) –
Standards – Primary (Urban) Co-operative Banks

Please refer to our circular UBD.CO.BPD (AD) Cir.No.6/14.01.062/2011-12 dated April 20, 2012 on risks arising from the deficiencies in AML/CFT regime of certain jurisdictions.

2. Financial Action Task Force (FATF) has updated its Statement on the subject and document ‘Improving Global AML/CFT Compliance: on-going process’ on June 22, 2012 (copy enclosed). The statement/document can be accessed from the following URL also:

http://www.fatf-gafi.org/documents/repository/fatfpublicstatement-22june2012.html and
http://www.fatf-gafi.org/topics/high-riskandnon-cooperativejurisdictions/documents/improvingglobalamlcftcomplianceon-goingprocess-22june2012.html

3. Primary (Urban) Co-operative Banks are accordingly advised to consider the information contained in the enclosed Statement.

4. This, however, does not preclude Primary (Urban) Co-operative Banks from legitimate trade and business transactions with these countries and jurisdictions.

5. The Principal Officer should acknowledge receipt of this circular to our Regional Office concerned. 

Yours faithfully,

(P. K. Arora)
General Manager