Public RelationsRBI alerts RRBs on transactions with Iran, Pak
The Reserve Bank of India (RBI) has directed regional rural banks (RRBs) to keep a watch on transactions of customers with countries like Pakistan and Iran since concerns have been raised about the rules there in combating terror funding.
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"Regional Rural Banks are accordingly advised to take into account, risks arising from the deficiencies in anti-money laundering (AML), combating of financing of terrorism (CFT) regime of Iran, Uzbekistan, Pakistan, Turkmenistan and Sao Tome and Principe," RBI said in a notification to RRBs.
The notification follows concerns raised by the Financial Action Task Force (FATF), an inter-governmental body, regarding AML and CFT norms in these countries.
Last month, the RBI had issued a similar direction to commercial banks on transactions of customers with these countries.