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FATF Mutual evaluation - Implementation of Know Your Customer (KYC)/Anti-Money Laundering (AML)/Combating the Financing of Terrorism (CFT)
 
EC No. 52 /DoS - 05 /2021                              09 April 2021
Ref. No. NB. DoS / POL / 104 / J-1 / 2021-22
The Chairman, All Regional Rural Banks
The Managing Director, All State Cooperative Banks
The Chief Executive Officers, All District Central Cooperative Banks
 
Dear Sir / Madam
 
FATF Mutual evaluation – Implementation of Know Your Customer (KYC) / Anti-Money Laundering (AML) / Combating the Financing of Terrorism (CFT) 
 
1.  In order to combat money laundering and terrorist financing, as well as the financing of proliferation of weapons of mass destruction, the Financial Action Task Force (FATF) which is a global body frames the Anti Money Laundering (AML) / Combating Financing of Terrorism (CFT) related standards. These standards also guide KYC / AML / CFT framework in India. FATF conducts Mutual Evaluation (ME) of member countries to assess their compliance level vis-à-vis recommendations. As you are already aware, India as a member country is scheduled to undergo the next round of FATF Mutual Evaluation in 2021-2022. The visit of the FATF is expected during 2021-22 and during the visit, the FATF will visit a few banks to evaluate implementation of KYC/AML. In this context, it is necessary for all Rural Cooperative Banks (RCBs) and Regional Rural Banks (RRBs) to scrupulously implement the Master Direction – Know Your Customer (KYC) Direction, 2016 issued by RBI vide DBR.AML.BC.No.81/14.01.001/2015-16 updated as on 01 April 2021.
 
2.  Further, in this connection, we also invite your attention to RBI circular DOR.AML.BC.No. 31 / 14.01.001 / 2020-21 dated 18 December 2020 addressed to all Regulated Entities on Amendment to Master Direction (MD) on KYC – Centralised KYC Registry – Roll out of Legal Entity Template and other charges (copy enclosed). As per the circular, all banks have to upload the KYC data pertaining to accounts of Legal Entities (LEs) opened on or after April 1, 2021 on to CKYCR in terms of Rule 9 (1A) of the PML Rules.
 
3.    Please acknowledge receipt to our Regional Office.
 
Yours faithfully
        Sd/-
(K. S. Raghupathi)
Chief General Manager
Encl. : As above