Part C : RBI/FEMA
Given below are the
highlights of certain RBI Circulars.
52 A.P. (DIR Series)
Circular No. 26,
dated 22-12-2010
A.P. (FL/RL Series) Circular
No. 7,
dated 22-12-2010
Know Your Customer (KYC)
norms/Anti-Money Laundering (AML) standards/Combating the Financing of Terrorism
(CFT)/Obligation of Authorised Persons under Prevention of Money Laundering Act,
(PMLA), 2002, as amended by Prevention of Money Laundering (Amendment) Act, 2009
— Cross-Border Inward Remittance under Money Transfer Service Scheme
Attached to this Circular is
a Statement dated June 25, 2010 issued by the Financial Action Task Force (FATF).
This Statement divides the strategic AML/CFT deficient jurisdictions into two
groups as under :
(a) Jurisdictions against
whom countermeasures are required to be applied to protect the international
financial system from the ongoing and substantial money laundering and
terrorist financing (ML/TF) risks — Iran.(b) 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 —
Democratic People’s Republic of Korea (DPRK), Sao Tome and Principe.
This Circular advices
Authorised Persons 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.