Monitor transactions with Pak & Iran: RBI

Written by: Super Admin
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Mumbai, Nov 24: In a move to secure financial institutions from being a tool for funding terrorist operations, Reserve Bank of India has notified banks to monitor the transactions of customers with countries like Iran and Pakistan.

The notification issued by the RBI advised banks and financial institutions 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.

Financial Action Task Force (FATF),  the inter-governmental body behind the notification expressed concern over Iran's  refusal to address its AMO and CTF regime deficiencies.

"The FATF remains particularly concerned about Iran's failure to address the risk of terror financing and the serious threat this poses to the integrity of the international financial system," FATF said.

The body said that Pakistan's AMLO expiry on Nov 28, 2009 was also of a major concern.

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