RBI imposes restrictions on new entities from non-FATF compliant jurisdictions

The Financial Action Task Force (FATF) periodically identifies jurisdictions with weak measures to combat money laundering and terrorist financing activities. Jurisdictions that do not fall under 'high-risk' and 'increased monitoring' categories are considered as FATF-compliant ones.

The Reserve Bank on Monday put in place restrictions with respect to investments in payments system operators (PSOs) by new entities from jurisdictions that have weak measures to deal with money laundering and terrorist financing activities. The Financial Action Task Force (FATF) periodically identifies jurisdictions with weak measures to combat money laundering and terrorist financing activities. Jurisdictions that do not fall under 'high-risk' and 'increased monitoring' categories are considered as FATF-compliant ones. "Investments in PSOs from FATF non-compliant jurisdictions shall not be treated at par with that from compliant jurisdictions," the Reserve Bank of India (RBI) said in a notification.